Shares Spread Betting: Burberry Falls Despite Positive Results and Chinese Growth Data
In mid-morning trade the FTSE 100 has made another surge above the 5700 level as economic data from China gives miners a boost.
The market’s complete indifference to last week’s S&P downgrade of France and others was further confirmed today as the FTSE 100 briefly set a fresh high for the month so far.
Although the economic data from China has showed a slowdown, it was not as much as investors had feared.
UK inflation also saw the biggest fall since April 2009, putting the monthly CPI rate at 4.2%.
Positive quarterly numbers from Burberry have not been received in the same tone by the shares spread betting markets.
The worry is that the pace of growth is slowing, but early pessimism towards the share price does seem a little overdone and we have seen steady buying after a sharply lower open.
Looking ahead to the US open, today is the first day’s trade since the official announcement of the S&P downgrade and at the moment we expect the Dow to start around 125 points higher than Friday’s close.
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 Yusuf Heusen, Sales Trader, 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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