Spread Betting and UK Stocks Continue to Rally
Financial Market Comments from David Jones, Chief Market Strategist, IG Index.
In mid-morning trading, it has been a strong start to the week, with the FTSE 100 up by around 60 points so far.
UK stocks continue their rally from the two-month low seen a week ago and have got back to levels last seen in mid-June.
Once again it is the miners and financials dictating the direction of the market – Lloyds Banking Group is the top gainer ahead of results later this week.
There has been something of a resurgence of interest by traders in the banks after a quiet couple of months and market reaction to these Lloyds figures could well set the tone for the direction of UK shares for the next couple of weeks.
Today’s strength sees the FTSE well above the 4400 mark and approaching an area that has been a real problem since early May.
Successive rallies to the 4500 zone ran out of steam on four separate occasions recently – so the next couple of days will be a real test for the latest spurt in positive sentiment.
Many traders would see a decisive break through 4500 as the sign of renewed optimism for stock markets, after a nervous few weeks, and would leave them targeting the year’s highs at 4700 next.
Ahead of the US open, we are expecting the Dow Jones to open up around 50 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.
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.
0 comments
There are currently no comments. Please start by filling out the form below.
You must log in to post a comment.