Indices Spread Betting Markets Rally on Well Received Spanish Bond Auction
A well received Spanish bond auction put a touch of Mediterranean sparkle into the FTSE 100 this morning, enlivening up what started out as a rather dull session.
The leading index is up around 45 points in mid-morning trade, after Madrid managed to sell almost double its target of debt this morning.
An auction of five-year notes saw almost €10 billion sold, while the yield dropped from 5.18% to 3.38%.
Indices spread betting markets had been on hold before the sale, as traders waited to see whether there was anyone left willing to buy up debt issued by the Iberian state.
Italian ten-year yields dropped in sympathy, down to 6.67%, which will bring a smile to the faces of politicians in Rome ahead of their own long-term bond sale tomorrow.
However, smiles are in very short supply at Tesco this morning, with the shares down 14% to a three-year low of 331.43p. This came after the supermarket titan warned that it expects minimal profit growth in the coming year. Looks like they’ll need every little bit of help they can get.
On the schedule today we have policy announcements from both the Bank of England and the ECB, with both expected to keep rates on hold.
Spread betting investors will be keeping their fingers crossed for positive noises from Frankfurt about propping up sovereign bond markets in the Eurozone.
After this excitement, we get US retail sales figures for December, followed by weekly jobless data.
Markets remain within a tight trading range at present, so bulls will be hoping for more improvement from the US to shake stocks from their current lethargic state.
Spread betting carries a high level of risk to your capital. You may lose more than your initial investment. It may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.
Financial Market Comments from Chris Beauchamp, Market Analyst, IG Index.
The above comments do not constitute investment advice and Clean Financial accepts no responsibility for any use that may be made of them.
Content provided by IG Index which is Authorised and regulated by the Financial Services Authority. FSA Register number 114059.
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