Indices Trading Update
Financial Market Comments from Philip Gillett, Sales Trader, IG Index.
In mid-morning trading UK shares have started off weakly again as investors await the latest US unemployment numbers.
We are seeing fairly broad-based weakness so far today for London blue chips, with another weak performance on US markets and indices weighing on sentiment.
This is the fourth day on the trot we have seen weakness for UK shares as the last two weeks have proved to be a real test of whether traders believe this weakness is yet another buying opportunity for the next push higher.
So far the 5000 mark has underpinned the FTSE slide today, and now all eyes are on the latest US Nonfarm payrolls release, due out at 1.30pm UK time.
This is expected to show that around 175,000 jobs were lost in the US economy last month – a number worse than this could be the catalyst that erases any remaining positive sentiment for the short-term and may spark a bigger sell-off.
At the moment, US markets are looking a little firmer ahead of the official open, with the Dow Jones currently trading 15 points higher than last night’s close, but this is irrelevant until those payrolls are out of the way.
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.
Good Luck!
DB
The above comments do not constitute investment advice 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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