Spread Betting Markets Reduce Risk Ahead of Non Farm Payrolls
Financial Market Comments from Will Hedden, Sales Trader, IG Index.
At mid-morning London’s leading index is only just in positive territory.
The FTSE has struggled to make any headway in the first couple of hours trading. There seems to be a growing temptation to take risk out of the market ahead of those non-farm payrolls from across the Atlantic early this afternoon.
Worse than expected UK services PMI is also serving to weigh on sentiment with both London equities and the pound selling off a little on the back of this news, but again there’s little that’s worthy of note to be working on.
After a poor August the temptation may well be there to try to at least consolidate around these levels – Wednesday’s gains remain in tact but again the long weekend that’s coming up in the US could see traders taking money off the table in the next few hours regardless of that employment reading from Washington.
Looking into next week, the return to work will essentially be completed. We’ve already seen M&A rumours bubbling around so there would be little surprise if this agenda was to start gaining ground in the near term.
The latest MPC update from the Bank of England is also due next Thursday so expect this to be closely watched. This morning’s PMI reading combined with yesterday’s house price data is certainly starting to cast a shadow over the economic recovery. Therefore any signs of concern from Mervyn King could initiate another ripple of selling across the board.
In the financial spread betting market, Wall Street is currently eyeing a slightly softer start after the late spurt of buying last night. However the outcome of that payroll data will be the determining factor here.
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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