Spread Betting Markets Hit by Swine Flu
UK stocks have started the week off negatively so far, with the FTSE down by around 20 points.
Travel companies have been particularly hit in morning trading as the markets have digested the swine flu news.
BA and cruise company Carnival are two of the biggest losers, both off by more than 6% at the mid-morning stage. This has put a dent in the three-month recovery for BA, but there are early signs that some traders are viewing the initial sell-off as being somewhat overdone and a knee-jerk overreaction to the weekend’s news.
Nevertheless after some strength towards the end of last week, markets do look vulnerable to further slides from these levels.
Major indices such as the FTSE 100 and the S&P 500 have yet to better the levels hit in early-to-mid April, so further choppy trading could well be the order of the day.
Looking ahead to the US session, at the moment we are expecting the Dow to open down around 90 points lower from Friday’s close – again on swine flu concerns.
With no major economic announcements due out of the States today, it could be a somewhat flat session ahead. As has happened in the UK, any strength in US stocks may prove to be too much of a temptation for traders to take some money off the table as the markets struggle to find direction.
Note that 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.
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