Crude Oil Pulls Back Despite Changes to Greek and Italian Leadership
|
|
 |
The regular Financial Markets Update from Simon Denham of Financial Spreads.
For today's update >> Financial Markets.
Spread Betting 15 November 2011
Calls for greater integration within the EU are getting louder and louder as politicians continue to dream of an ever more powerful central European state.
There’s no question that more fiscal integration could have helped avert the current crisis by preventing profligate states from going on their spending sprees whilst borrowing from the bond markets at the same rate as Germany.
However, the reputation of the Eurozone project has been badly tarnished and, whilst there might be appetite from politicians, there is growing scepticism from the voters.
Certainly in the UK, which has historically been one of the more sceptical nations, proud to have the head of state on its own bank notes, the old cracks in the Conservative party have re-emerged. Now the Labour party is making louder noises about reclaiming powers from Brussels.
The banging of the EU drums is a desperate attempt to prevent a break up of the Eurozone which is looking increasingly likely as the crisis unfolds.
Calls for further integration will face stiff opposition and take years to implement even if the general consensus from European parliaments is in favour of such a move.
This morning the FTSE is just about holding up OK at around 5515. All eyes remain on the government bond yields of Italy and Spain which have been creeping higher this morning, but at least there’s been some decent GDP data so far this morning from both France and Germany.
Things have been rather choppy so far this week and it seems as though there really is little buying appetite to really push things higher on the indices spread betting markets.
There’s more economic data to come with UK CPI inflation data and then the German ZEW survey.
Inflation is expected to dip back towards the 5.0% mark with many believing this will be the peak for rising prices.
This will be music to everyone’s years who have suffered years of way above target inflation, apart from the blip down during the recession. Unfortunately, however, there’s still a very long way to go to get back towards the BoE’s target of 2%.
FX spread betting investors have continued their bearish stance on the euro as it is on the decline for a second day today. Merkel’s comments that the Eurozone is in the worst state since WWII come just in time for those German investor confidence figures mentioned later today, expected to show their lowest in three years.
Traders all over will be extremely cautious about the single currency as it seems that, despite a few governmental changes in the Eurozone, sentiment hasn’t really appeared to pick up.
As said yesterday, we should still expect short term bearishness over the euro and strength in more safe havens currencies such as the dollar and yen. The euro is trading down against the dollar this morning at $1.3600 with support at $1.3545 and resistance at $1.3720.
Eurozone members that have been worst hit by the debt crisis were subject to a political reshuffle yesterday, sending worrying investors into the safety of the US dollar and out of gold.
Reports have stated that current trading volumes are minute; the only people left in the markets seem to be short term speculators, with the long term holders taking a peripheral view for the time being.
So all in all, yesterday’s session saw the yellow brick lose $7.5 to close at $1779.8, which at time of writing has been extended down to $1770.1.
Despite the changes in Greece and Italy’s political system, showing a want for reduction of the current deficits, crude oil pulled back from the recent highs as the bears took hold of the session yesterday.
Not only did the persistent concerns on the European debt crisis keep downward pressure on the price of black gold, but also the strengthening dollar. At time of writing this pressure has been eased somewhat as Brent trades higher at $112.05.
The above comments do not constitute investment advice and neither Financial Spreads nor Clean Financial accept any responsibility for any use that may be made of them.
Financial Spreads >>
"With FinancialSpreads.com you get all the normal
advantages of Spread Betting plus..." >> read
Financial Spreads review.
|
Risk Warning: 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.
Article provided / approved by Financial Spreads which is a trading name of London Capital Group Ltd which is authorised and regulated by the Financial Services Authority (FSA), FSA Register number 182110.
'Crude Oil Pulls Back Despite Changes to Greek and Italian Leadership' edited by SD, updated 15-Nov-11
Related Articles:
Financial Markets, updated 21-May-12
Financial Markets - your daily update on the markets with views and opinions from the insiders, plus a look at...read article: Financial Markets.
Online Spread Trading, updated 14-May-12
A look at the latest spread betting markets plus company reviews, compare prices and details on where to free charts and free live prices....read article: Online Spread Trading.
Euro / Dollar Spreads Drop on Eurozone Sovereign Debt Concerns, updated 02-May-12
Europe remains engulfed in sovereign debt troubles so the forex markets took notice of the potential downside over the short term. This morning the euro is...read article: Euro / Dollar Spreads Drop on Eurozone Sovereign Debt Concerns.
Commodities Spread Betting: Gold Futures Rebound After Sharp Losses, updated 01-May-12
The commodities markets saw a sharp sell off in gold yesterday. For the rest of the day, the gold futures market fought its way back up and closed...read article: Commodities Spread Betting: Gold Futures Rebound After Sharp Losses.
Online Spread Betting Markets See Gains Despite Weak US GDP Figures, updated 30-Apr-12
The online spread betting markets seem to be defying gravity as they brushed off Friday's weaker than expected US GDP figures. Stock market indices...read article: Online Spread Betting Markets See Gains Despite Weak US GDP Figures.
US Crude Oil Futures Struggle as US Jobless Data Disappoints, updated 27-Apr-12
The US crude oil futures market started under pressure as the figures for the US jobless claims continued to show a struggling employment sector. However...read article: US Crude Oil Futures Struggle as US Jobless Data Disappoints.
Forex Spread Trading: Euro Falls as Hollande Vows Treaty Renegotiation, updated 26-Apr-12
Francois Hollande, leading French Presidential candidate, vowed to renegotiate the European treaty. The forex spread trading markets saw the euro remain at...read article: Forex Spread Trading: Euro Falls as Hollande Vows Treaty Renegotiation.
First Page << 1 2 3 4 5 6 7 8 9 10 11 12 >> Last Page
Daily Spread Trading Index
Index of spread trading articles - the regular Spread Trading Update from Financial Spreads...see Index.
|
|
Q) Average Trading Results?
A) Get free spread betting tips, offers, price updates, important news and more!
|
|
