Traders Await US Reaction to Dubai News: Financial Spread Trading Update
Financial Market Comments from Tim Hughes, Head of Sales Trading, IG Index.
In mid-morning trading, UK shares are lower, with the FTSE nudging back to the 5200 mark.
Shares in London have come under some pressure as traders focus on developments in Dubai.
The United Arab Emirates central bank commitment to providing liquidity for lenders has gone some way to help shore up confidence amongst investors.
In the light of this, today’s move in London could equally just be put down to a normal pullback after Friday’s rise.
We are likely to see a lack of direction ahead of the US open and a steady session on Wall Street should ensure that markets return to normality for the rest of the week.
Looking ahead to the US, at the moment we are expecting the Dow Jones index to start off around 30 points lower than Friday’s close.
The only economic release of any note today is Chicago PMI data – no doubt developments in Dubai will still be one of the major points of focus for traders, but barring any further bad news regarding the current debt situation, it is difficult to see any more significant weakness for shares at the moment.
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.
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