Falling Markets and Euro Problems
|
|
 |
Trading Features / Strategies from Simon Denham of Capital Spreads.
In spite of my repeated advice to clients to sit on their hands a steady stream of buyers was seen throughout yesterday’s sessions as punters tried to ‘bottom pick’. The steady destruction throughout the day and early evening left most longs hanging on the ropes. Only those with deep pockets were able to withstand the drama and this morning everything seems just a little bit rosier.
Rumour trickled around dealing rooms about the viability of a range of major banks with, in the UK, the focus settling on RBS/NatWest. The stock closed down over 20% dropping 44p to 145p a new low for the year/decade. The bank was the obvious target after the huge disaster of the ABN purchase had hit its co-bidder Fortis in Belgium. Lest people forget RBS paid for ABN, in the main, with borrowed money.
Financial Spreads >>
"With FinancialSpreads.com you get all the normal
advantages of Spread Betting plus..." >> read
Financial Spreads review.
|
Whilst the focus has been on the exchanges the real drama was unfolding in the currency markets. At one point yesterday the Euro had fallen by over ¥10 from the close on Friday making a low print at ¥135.03. This represented a one day fall of 7% of one major currency versus another and added to the ¥25 fall already seen since July. Aside from the UK’s ejection from the ERM back in the ‘90s I cannot remember such a violent dislocation. The entire Euro plan is being called into question as the absence of any central lender of last resort is causing individual nation States to “make it up as they go along”. This is creating something of a problem for holders of the Euro itself. If nations start to pull out of the Euro project (and I do not actually believe things are even remotely this bad yet) it will make valuation of assets in the currency almost impossible. Better to dump them for the time being and put your cash into Yen, Dollars and even (cough, cough) Pounds.
The fact that two of the weakest nations have ‘guaranteed’ deposits should not distract depositors from what is perceived as safe and what is actually safe. If the s*** really hits the fan then I am afraid that neither the Greeks nor the Irish could possibly afford the cost. The guarantee would be worthless.
The above comments do not constitute investment advice and neither Capital Spreads nor Clean Financial accept any responsibility for any use that may be made of them.
Capital Spreads >>
"With Capital Spreads you get all the normal
advantages of Spread Betting plus..." >> read
Capital 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 Capital 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.
'Falling Markets and Euro Problems' edited by SD, updated 07-Oct-08
Related Articles:
Daily Spread Betting Blog, updated 22-May-12
In mid-morning trade the FTSE 100 has made a solid start and has continued its push higher. A strong finish in US markets saw the Dow Jones closing on the highs of the...read article: Daily Spread Betting Blog.
Spread Betting Prices, updated 22-May-12
Spread betting prices - a live spread betting price guide plus which spread betting companies offer live prices, how to use them and...read article: Spread Betting Prices.
Spread Betting Guide, updated 21-May-12
Spread Betting Guide: What is spread betting, how to spread bet, spread betting advantages, spread betting examples and...read article: Spread Betting Guide.
Spread Betting Guide to Making a Trade, updated 21-May-12
Spread Betting Guide to Making a Trade: A step-by-step guide on how to place a spread bet including a fully worked example and...read article: Spread Betting Guide to Making a Trade.
Stock Market Opening and Closing Times, updated 21-May-12
Stock Market Opening and Closing Times: a look at when the leading European, US and Asian stock markets open and close. Plus, where to get stock market index trading analysis, news and...read article: Stock Market Opening and Closing Times.
Spread Betting v Share Trading, updated 21-May-12
Some people see spread betting and standard trading as two different sides of the same coin. Whilst the pair do share similarities, it is fair to say that...read article: Spread Betting v Share Trading.
Sectors Spread Betting, updated 21-May-12
Sectors spread betting is a convenient way of taking a position on an entire industry by giving investors exposure to a basket of underlying stocks in a particular sector. Sectors are groups of firms that all...read article: Sectors Spread Betting.
First Page << 1 2 3 4 5 6 7 8 9 10 11 12 >> Last Page
Also see:
Trading Features / Strategies Index – an index of all the Trading Features.
|
|
Q) Average Trading Results?
A) Get free spread betting tips, offers, price updates, important news and more!
|
|
