Spread Betting Markets Fall on Spanish Debt Concerns and Chinese PMI
Financial Market Comments from Yusuf Heusen, Senior Sales Trader, IG Index.
The FTSE 100 took a heavy fall at the open in London this morning, and by mid-morning the index is down around 60 points.
The FTSE opened in desperate fashion this morning on the news that China’s manufacturing growth has slowed and Spain’s sovereign debt problems have intensified.
The Chinese government’s purchasing managers’ index (PMI) fell from 53.9 in May to 52.1 in June, as the world largest emerging economy moves to restrict growth to ease inflationary pressure in the country.
Asian stocks have also been in decline, with Japan’s Nikkei 225 closing 191 points down (-2.04%) at its lowest level since November 2009.
The news that Moody’s has said it may downgrade Spain’s credit rating also weighed on London’s blue chips this morning. Spain is preparing to sell €3.5 billion of five-year notes today, which prompted Moody’s to place the country’s Aaa credit ranking on review for reasons of difficulties in meeting fiscal targets and declining growth prospects.
There aren’t many names in the black on the FTSE leader board today, with only BG Group (+0.35%) and Fresnillo (+0.20%) pulling with any weight.
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.
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