UK 100 Spreads Rise Ahead of EU Finance Meeting to Agree Greek Bailout
In mid-morning trade, the UK 100 has set fresh six-month highs.
Markets were always set for a strong start this morning following developments over the weekend.
Part of this is due to renewed hopes that we will finally this time see a resolution for the Greek bailout deal. A meeting of Eurozone ministers later today has heightened expectations that this one is going to be different from all of the others.
In addition, the Chinese central bank cutting reserve requirements for China’s banks has fuelled speculation that this will help industrial production, boosting commodity based UK shares.
Although we can all be allowed a degree of sceptism regarding an imminent solution to the Greek bailout, financial spread betting investors still seem happy to look for excuses to buy. Stock markets still seem to have plenty of momentum, even considering how far they have come in recent months.
With the US closed today for the Presidents’ Day holiday, the afternoon session would normally be expected to be one of just consolidating this morning’s gains, but the Eurozone meeting always has the potential to inject some volatility.
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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