Markets Weaken on Chinese Fiscal Policy Concerns: Spread Betting News
Financial Market Comments from Tim Hughes, Head of Sales Trading, IG Index.
In mid-morning trading UK shares are a little weaker.
In a quiet start to the week so far, the UK has taken its lead from Asia overnight as concerns about possible tightening of fiscal policy from China have made investors cautious.
The mining sector seems to be the hardest hit on worries that Chinese authorities will continue trying to control the rate of recovery.
However, this effect shouldn’t be overstated as for now the FTSE index is only off by around a quarter of one percent.
At the other end of the scale, the biggest riser is telecoms business BT Group, up by around 2% on an investment bank upgrade.
This has helped add some pace to the recovery of a share price which had been out of favour with investors for much of this year due to pension deficit concerns.
Looking ahead to the US open, indices over there are following suit with the muted start in Europe.
At the moment we are expecting the Dow Jones to start off around 20 points lower. With little in the way of major economic news expected, it could be a quiet day ahead.
But it was only last Friday that we saw the major indices push out to fresh seven-week highs for this shorter-term recovery, so the bullish bias still remains.
It wouldn’t be a surprise for the Dow to claw back these opening losses as the day goes on.
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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.
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