US Earnings Season Lifts FTSE 100 Spread Betting Market
Financial Market Comments from Philip Gillet, Sales Trader, IG Index.
In mid-morning trading, the FTSE 100 is slightly down on the day.
Bank and Oil sectors are up but are counterbalanced by a drop in the miners. Currently we are in a data driven market and with the lack of figures out in the UK today trading is light.
It was a fantastic start for to the week for equity markets: on close of business Friday, the FTSE 100 looked like it was going to continue its downward trend that had been taking shape since the start of the month, and was starting to test the 4000 level.
However we are now up nearly 240 points from this months low, a rise of 6%. The market has suddenly seen more positive signals as we enter the US earnings season.
So far results are better-than-expected and the results of Goldman Sachs exceeded all expectations. Last night, spurred on by improved industrial production data, the Dow Jones gained 3%.
We have some more big guns reporting today in the US, with JP Morgan Chase at 1.30pm (BST) followed by IBM and Google.
It will be interesting to see if JP Morgan can follow the lead of Goldman Sachs’ results or whether Goldman Sachs are just a class above.
US housing data also out at 1.30pm is expected to show a slight decline from the previous month, but any indications of a turnaround could well lead to further positive market movements
Right now the market seems to have got over excited and is maybe ahead of itself, with minutes released from the FOMC indicating a belief that the economy is weak and vulnerable.
The US markets seem to have taken this sentiment to mean the continuation of low interest rates, ignoring the fact that the World’s largest economy is still viewed as fragile by its policy makers.
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 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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