Spread Betting: FTSE Stocks Attract Interest After Encouraging US Fiscal Cliff Comments
By mid-morning, the FTSE was comfortably holding its positive start, up 50 points at 5657.
With all the negativity in the spread betting markets last week, the bears had been out in force, but on Monday morning they seem to have gone into hibernation.
Traders have a considerably more bullish outlook, buoyed by encouraging noises made by US politicians over the weekend. These increased the belief that they will be able to resolve the fiscal cliff issue before the deadline.
A number of FTSE stocks were also attracting traders’ interest, helping the index move higher.
BP is up strongly as rumours sweep the markets that they will embark on a £3.7 billion share buyback programme.
Also being heard are positive noises on a swift completion to the Glencore/Xstarta tie up.
HSBC have continued a trend of UK banks re-focusing their business, with the planned sale of its stake in Chinese insurance company Ping An likely to raise $9.3 billion.
Fears for Ocado had been troubling the food retailer, but news that it has managed to extend its loan agreements has seen the price spike by 14p, or 23%, at 10am (London time).
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 Alastair McCaig, Market Analyst, 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.
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