Spread Betting Markets Hold onto Recent Highs
Financial Market Comments from Anthony Grech, Market Strategist, IG Index.
The London index has made a solid start to the week’s final session although further volatility may still be seen.
The FTSE is continuing to rally. The 100 Index is taking its lead from yesterday’s upbeat session on Wall Street and holding clear of those highs from late August 2008 as a result.
However there’s little in the way of economic or corporate data around for traders to work on. As a result the quarterly options expiries we have today could take on added significance.
The London activity has passed with a positive impact and we still have Frankfurt and New York to come.
With equities remaining toppy, any overt volatility here could translate into a bigger sell-off.
There is no shortage of traders out there right now who believe markets are due for a correction and with signals such as the Dow having posted a bumper eight consecutive days of gains, it’s certainly difficult to dismiss these suggestions.
A bullish statement from Lloyds Banking Group regarding a speedy return to profitability is helping drive renewed confidence in the banking sector this morning while other heavyweight stocks are making only limited progress.
With Wall Street showing a broadly flat start to the day we could now be in for a rather nervous wait.
For many it’s becoming increasingly difficult to believe that equity prices can be sustained at these levels rather than some meaningful profit-taking transpiring.
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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