Crude Oil Spread Betting Market Rises on EU Solution Optimism
|
|
 |
The regular Financial Markets Update from Simon Denham of Financial Spreads.
For today's update >> Financial Markets.
Spread Betting 24 October 2011
The markets remain hopeful that Wednesday will bring the answers to all our prayers as investors give the European politicians the benefit of the doubt.
Headlines over the coming days will be filled with little other than the discussions and for now the FTSE is content hovering around the 5500 level.
We were calling the index to open up higher around 5540 but by the time we came to commence trading some 30 points had been knocked off our call.
In the near term, the index spread trading market is struggling to get above and beyond the highs it formed exactly a week ago. Fears of a mini double top formation on the hourly chart are encouraging some of our spread betting account holders to short the index.
PMI surveys from Germany and the EU will be keenly watched today, in particular the German ones which are expected to show manufacturing and services have just dipped below the 50.0 level which suggests contraction.
A combination of factors has helped the euro strengthen against the dollar and the single currency has squeezed nearly 200 pips since last Friday.
Traders got the taste for riskier currencies after the EU summit, where the expectation is that the bailout fund will be expanded, despite a Franco-German divide on other areas.
Elsewhere, bullish traders were reviewing potential for further quantitative easing in the US and also expected rises in China’s manufacturing. The EUR/USD forex pair is trading at $1.3900 currently, with support at $1.3810 and resistance at $1.3955.
The three consecutive sessions of gold losses came to an end on Friday, as investors closed their short positions ahead of the EU summit on the weekend.
Other contributors to the rally were the weaker US currency and general market optimism regarding a resolution over the EU bailout fund which would recapitalize the banking system and prevent the Greek crisis from spreading any further.
All in all, the precious metal gained $31 to end at $1640.5 and this rally has been added to this morning as gold trades at $1651.7. It is, however, still locked in the sideways range of $1600.0 - $1675.0.
The crude oil spread betting market was given a boost by the general optimism across the markets on Friday.
Investors considered that if EU officials do agree a solution for the bailout fund, then this will also safeguard a few other Eurozone members holding Greek bonds and therefore maintain demand for the black stuff.
As well as this, the weaker US dollar and higher equity markets are offering good support and at time of writing, Brent crude is up at $110.56.
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 Spread Betting Market Rises on EU Solution Optimism' edited by SD, updated 24-Oct-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!
|
|
