UK Spreads Struggle to Stay Positive as Investors Take Profits
Financial Market Comments from Will Hedden, Sales Trader, IG Index.
After a choppy start, the FTSE spread betting market is working hard to stay in positive territory.
Yesterday’s bumper gains in London may have left traders tempted to start booking some quick profits but further signs of a weakening housing market in the UK are doing nothing to suggest cash yields will be improving any time soon.
As a result this does seem to be giving London based FTSE the edge over mainland Europe, not least given the signs of tighter monetary policy that are now emerging from Sweden with a quarter point hike in its repo rate.
Whether traders will be inclined to hold onto this optimism remains to be seen however, as tomorrow’s Non Farm payroll figures from the US are now looming and, given the shortfall in the ADP reading, expectations are certainly muted.
What earnings news we have seen this morning has brought little to the table: DSG failed to impress with its trading update, but BG Group and Autonomy are both sitting higher as bid chatter surfaces.
Any hints over policy from the ECB will be closely followed, although the long weekend has knocked the BoE’s meeting back to next week.
Looking ahead to the US session, weekly jobless claims and pending home sales data may offer further direction but at present we’re eyeing a broadly unchanged start for the major US indices.
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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