Spread Betting Markets Fall on Bank Downgrades and Weak German Data
In mid-morning trading the FTSE 100 is suffering heavily, down around 40 points as the economic situation steadily worsens.
In a sense, Moody’s downgrade of 15 major global banks was merely a sideshow for the spread betting markets.
The real story is a good deal more serious, as Germany is finally beginning to feel the pinch of the Eurozone crisis.
We had wondered how long the Eurozone’s bedrock economy could remain immune from the quakes rattling the rest of the continent, and the question now is whether Germany’s hard-line stance has been similarly shaken.
Last night’s downgrade for some of the world’s leading banks just underlines how far from recovery the global financial sector really is.
This afternoon the Eurozone’s ‘big four’ of Germany, France, Spain and Italy will meet to mull over the latest developments in the crisis. However, there still seems to be little chance that the Germans will deviate from their firm opposition to communal bonds.
Dow futures are currently pointing to a slightly higher open, although upbeat sentiment is likely to remain absent for this final session of the week.
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 Chris Beauchamp, 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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