Spread Betting: Uncertainty ahead of Central Bank Meetings Weighs on FTSE 100
In mid-morning trading, the FTSE 100 is down 8 points, as caution creeps in ahead of key central bank meetings this week.
The month is looking likely to end on a quiet note, as spread betting investors enter ‘wait and see’ mode in advance of policy decisions from the Fed, the Bank of England and the ECB.
As the important events get closer, the sunny optimism that suggested policymakers would unveil impressive new measures has been replaced by nagging uncertainty.
Thus far no hints have been dropped as to possible courses of action, leaving markets wondering if Mario Draghi et al. can live up to their impressive rhetoric.
Disappointment in the wake of the meetings could be severe if measures are not announced, or if those outlined are not deemed to be sufficiently impressive.
In corporate news, the BP shares spread betting market is suffering the effect of lower oil and gas prices, and a drop in production occasioned by enhanced safety and maintenance programmes.
The steady grind of economic data continues, with the US Case-Shiller home price index, Chicago PMI and consumer confidence out this afternoon, and US markets are expected to open slightly higher, after yesterday’s lacklustre close.
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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