Spread Trading: FTSE Slumps Ahead of European Summit and Bond Auctions
The FTSE has started the week around half a percent lower this morning.
Following England’s exit from the football last night, spread trading investors have re-focused their attention on other European events with a similarly predictable result.
With a European summit on Thursday, Italian and Spanish bond auctions on Tuesday and Spain kicking off the week by formally requesting aid for its banks once again, it will be the debt crisis that governs sentiment.
Some modest strength in the mining sector is helping to mitigate wider falls but today may well end up being a replay of Friday’s trade.
Caution was very much the tone at the end of last week and it is certainly difficult to see much scope for decent gains ahead of the latest EU summit.
Looking ahead to the US open, at the moment we are forecasting the Dow Jones to start down around 80 points at 12,561.
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 David Jones, Chief Market Strategist, 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.
Content provided by IG Index which is Authorised and regulated by the Financial Services Authority. FSA Register number 114059.
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