UK Equities Perform Well: FTSE Spread Betting Update
Financial Market Comments from Anthony Grech, Market Analyst, IG Index.
In early trading, the FTSE has added around 34 points to last night’s closing level.
Today’s strength for equities has been fairly broad-based but unspectacular, with the biggest gainer, Resolution, up 3.5% by 10am in London.
Markets seem to be in limbo ahead of the Fed’s announcement on rates later today, with yesterday’s lacklustre trading session for the Dow also contributing to the markets’ sluggishness.
However, CPI data (also from the US) might give the markets a bit more shape this afternoon.
As markets start to wind down ahead of the festive season, traders will be wondering whether there is still some data-driven volatility left in equities this year.
Today seems as though it might set the tone for the final weeks of 2009. The Fed’s announcement will be received in the context of a global economy that appears to be recovering. Traders are well aware that low rates and cash lifelines cannot last forever.
The number of people in the UK claiming unemployment benefit has dropped for the first time in almost two years and VAT is about to head northwards.
When combined with potentially upbeat CPI data in the US later today, central banks will already be planning withdrawal strategies for economic life support.
How and when this happens will surely be the single biggest factor in determining the medium-to-long-term trajectory for equities.
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.
Content provided by IG Index which is Authorised and regulated by the Financial Services Authority. FSA Register number 114059.
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