UK Spread Betting Markets Attempt Recovery After US Inspired Sell Off
Financial Market Comments from Yusuf Heusen, Senior Sales Trader, IG Index.
In mid-morning trading the FTSE 100 is trying to stage a recovery after a sharp initial decline.
The FTSE 100 gave an impression of suffering the after-effects of overindulgence following the bank holiday weekend, dropping around 70 points at the bell this morning. However, by mid-morning the index seems to have found room for a good breakfast and is attempting something of a modest recovery.
The decline has been led by a sell-off among miners and sounds-like-a-stuck-record concerns over the strength of the US recovery.
Regarding the miners, Eurasian, Kazakhmys, Xstrata and Vedanta Resources are among the leading losers this morning, all down around 2% as base metals prices retreated.
The latest US concerns have risen out of worries that reports today will show that US home prices slowed in June and consumer confidence is approaching five-month lows.
Sterling too has had a disappointing morning, dropping against 15 of its 16 most-actively traded peers, including 0.3% against the Dollar, ahead of a report that economists say will reveal fewer lender-approved mortgages last month.
It’s only really been ARM Holdings (+4.17%) and Cable & Wireless (+2.07%) that have bucked the trend thus far today, although as the morning has progressed we’ve seen more life from London’s blue chips.
After an initial drop of some 70 points, by 10am (London time) the FTSE had arrested the fall and was last seen looking slightly better off.
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.
Good Luck!
DB
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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