Mining Sector and BP Boost FTSE 100 Spreads: Spread Trading Report
Financial Market Comments from David Jones, Chief Market Strategist, IG Index.
In mid-morning trading a surprisingly strong start has pushed the FTSE out to its highest levels since last Wednesday.
We are seeing a variety of sectors providing momentum this morning. Oil company BP is definitely helping, still gaining after the weekend news concerning the possibility of a strategic investor coming on board.
Today’s report that BP won’t be issuing any more shares has calmed any nerves that its value would be diluted and kept the bargain hunters happy.
However, the big lift for the FTSE is mainly down to the mining sector with 4% plus gains for a clutch of names. In isolation this all looks very positive, however, many traders are still cautious at the moment and not quite believing this strength is the start of a real recovery.
The Chinese stock market set 15 month lows yesterday and it is not unusual for a sharp gain by mining stocks to boost the FTSE only to see it all taken away again the next day.
Looking ahead to the US open, it looks as if the Dow Jones will start around 40 points higher than last Friday’s close when trading resumes after Monday’s holiday.
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 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.
0 comments
There are currently no comments. Please start by filling out the form below.
You must log in to post a comment.