Financial Spread Betting During the World Cup
Financial Spreads, the London based spread betting company, have released their guide to trading the stock markets around the 2010 World Cup.
According to Financial Spreads there are a variety of sectors that look promising. Naturally the bookmakers, the pub chains and retailers who sell England merchandise are worth investigating.
According to Adam Jepsen, a spokesman for Financial Spreads, “The problem with trading shares around the World Cup is that much of the positive effect of the tournament will already be priced into the shares. Also if England perform poorly, or if they are just plain unlucky, then some of the more obvious buys become sells.
“Having said that, with Financial Spreads you can speculate on stock markets and shares that are listed in some of the more consistent countries.
“For example, looking at German shares an investor could speculate on the Adidas share price to increase. And there won’t be much getting away from Adidas this summer. They sponsor both Germany and France, they are official FIFA partners, they sponsor players like Lionel Messi and David Villa. They even supply the match balls”.
It is also possible to spread bet on other European shares such as Carlsberg, however, the Danes are not the 2010 sponsors. In contrast, the US stock market does supply a few sponsors in the form of McDonalds and Coca Cola.
Another option is speculating on the South African Stock Market to perform well. During the more recent World Cups the host nation’s leading stock market index has performed well around the tournament.
(prices as of 12.15pm, 7 June)
Looking closer to home though, the shares of the various UK bookmakers are tempting but there are a few pitfalls. If England do not progress beyond the Group Stage then revenues will certainly be down. If England were to win the World Cup and Rooney were to pick up the Golden Boot, not an inconceivable combination, then the bookmakers could be facing some rather damaging payouts.
An Irish bookmaker like Paddy Power with less England specific exposure could be a less risky trade. Having said that Paddy Power also have a sports hedging business whereby a firm, eg a Furniture Company, offers its new clients a discount if England win the World Cup. The Furniture Company then hedges off that risk with Paddy Power. This additional exposure makes these particular Irish shares a less tempting proposition.
Elsewhere, the UK’s pub chains should experience reasonably brisk trade but again much of the upside could already be priced into the shares and there might be better value elsewhere.
“Looking at the more traditional sports retailers like JJB and Sports Direct they also have positives and negatives. They should see increased England shirt sales but the supermarkets are increasingly active in that market. Tesco are even an official England sponsor for 2010. The extra sponsorship, shirts sales and merchandise should give the shares boost. Also the other positive for Tesco is that if the England team enjoys a good run that should further boost alcohol sales.
“Adidas should not be ruled out and neither should trading the South African Stock Market however Tesco does have a few more strings to its bow. The supermarket also has fewer downsides and for that reason it is probably the stock to watch out for.” concluded Jepsen.
About Financial Spreads.
Based in London, Financial Spreads is a trading name of London Capital Group (LCG) which is authorised and regulated by the Financial Services Authority.
Investors can spread bet on stock market indices, shares, foreign exchange rates, commodities, bonds and interest rates over the phone. The commission free spread betting service lets account holders speculate on markets to go up or down and includes access to a range of charts and research data.
While LCG attempts to ensure that the information herein is accurate at the date the information was produced, LCG does not guarantee the accuracy, timeliness, completeness, performance or fitness for a particular purpose of any of the information provided herein and under no circumstances are they to be considered an offer, solicitation to invest or be construed as giving investment advice.
Financial Spreads Account / Website
Risk Warning: Spread betting and CFD trading carry a high level of risk to your capital and you may lose more than your initial investment. Spread betting and CFD trading 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
'Financial Spread Betting During the World Cup' edited by DB, updated 14-Jun-10
For related pages also see:
24 Hour Spread Betting, updated 20-May-13
The FinancialSpreads.com dealing desk is now open 24 hours a day so you can trade a wide range of popular markets throughout...read article: 24 Hour Spread Betting.
Tight Spreads, updated 15-May-13
If you know spread betting, you will know that tighter spreads mean better value. Financial Spreads are now offering some of the tightest spreads in the...read article: Tight Spreads.
Guaranteed Stop Loss, updated 13-May-13
Financial Spreads are now offering Guaranteed Stop Loss orders on their spread betting platform. Until now, clients had been able to speculate on the markets...read article: Guaranteed Stop Loss.
Spread Betting Charts, updated 13-May-13
Spread Betting Charts: Financial Spreads have upgraded their spread betting charts. The new charts include Back Testing tools, email alerts, more technical analysis features, new indicators, more time periods, new chart drawing features and...read article: Spread Betting Charts.
Limited Risk Spread Betting Account, updated 13-May-13
Limited Risk Spread Betting Account: You can trade over 2,500 global markets tax-free* and commission-free. Also, with the limited risk spread betting account every new trade comes with a Guaranteed Stop. Potential profits are unlimited but the downside is limited by...read article: Limited Risk Spread Betting Account.
Financial Spreads, updated 30-Apr-13
Financial Spreads review with User Ratings and Comments. Financial Spreads offer commission free & tax free* trading on 2,500+ spread betting markets. Plus 24hr trading, CFDs, broker opinions, advanced charts and...read article: Financial Spreads.
Financial Spreads Offer, updated 21-Mar-13
Details of the latest Financial Spreads new account offer. Open a new spread betting account with FinancialSpreads and...read article: Financial Spreads Offer.
Financial Spreads Prices, updated 19-Dec-12
Financial Spreads Prices: A range of sample FinancialSpreads.com Spreads and minimum stakes on a range of popular spread betting markets including the FTSE 100, Gold, Crude Oil, GBP/USD and...read article: Financial Spreads Prices.
Financial Spreads - Financial Spread Betting Markets, updated 30-Apr-13
Financial Spreads offers spread trading on Indices, Equities, Forex, Commodities and more. FinancialSpreads.com account information. Narrows spreads, free live prices and charts. Online spread trading with Fina...read article: Financial Spreads - Financial Spread Betting Markets.
Director Deals, updated 12-Apr-13
Access the latest Director Deals data via a Financial Spreads account. Investors can breakdown the Director Deals by Time, Position, Index and Sector. Director Deals can be viewed as a heat map, table and...read article: Director Deals.
Broker Recommendations, updated 09-Apr-13
FinancialSpreads now gives clients free access to the latest Broker Recommendations. Broker Recommendations can give viewed as a Heat Map or Performance Table. There are useful aggregate Buy, Overweight, Neutral, Underweight and Sell ratings as well as...read article: Broker Recommendations.
A Spreads Company, updated 30-Apr-13
Spreads Company Review - Financial Spreads - you get all the normal advantages of spread betting and a range of extra benefits...read article: A Spreads Company.
Spread Betting on the FTSE 100, updated 30-Apr-13
A quick and simple interactive example of how to spread bet on the FTSE 100...read article: Spread Betting on the FTSE 100.
FinancialSpreads.com Information, updated 30-Apr-13
Financial Spreads Account Information: Tight spreads, free candlestick charts, real time prices, small stake sizes plus...read article: FinancialSpreads.com Information.
FinancialSpreads Cuts Crude Oil and Dow Jones Spreads, updated 23-Oct-12
FinancialSpreads.com have cut their Dow Jones spread in half. Investors can now trade the Dow (Wall St) with a 1 point spread. The firm has also cut the spreads on the crude oil markets and S&P 500, the new tighter spreads...read article: FinancialSpreads Cuts Crude Oil and Dow Jones Spreads.
Financial Spreads Offers Tighter Spreads, updated 08-Mar-11
Financial Spreads, the London based spreads firms, has improved its pricing on a number of the most popular forex markets. The firm recently introduced Guaranteed Stops in order to help...read article: Financial Spreads Offers Tighter Spreads.
Financial Spreads: New Platform with Tighter Spreads, updated 12-Aug-10
Financial Spreads, the London based spread betting company has launched a new platform that offers a wide range of improvements as well as tighter spreads. FinancialSpreads.com now offers new...read article: Financial Spreads: New Platform with Tighter Spreads.
Financial Spread Betting During the World Cup, updated 14-Jun-10
Financial Spreads, the London based spread betting company, have released their guide to trading the stock markets around the 2010 World Cup. According to...read article: Financial Spread Betting During the World Cup.
24 Hour Trading for the UK Election, updated 06-May-10
As the UK election unfolds Financial Spreads clients will be able to trade key financial markets such as the FTSE 100 and Sterling/Dollar exchange rate throughout the night. Markets are expected to...read article: 24 Hour Trading for the UK Election.
Financial Spreads Market Update, updated 12-Sep-08
Financial Spreads Market Update: It is good to see the various spread betting companies improving their services. Invariably that means...read article: Financial Spreads Market Update.
Financial Spreads Cricket Tickets, updated 27-Jun-08
Financial Spreads have a pair of tickets to see England v New Zealand at Lord's and there aren't too many catches. If you don't have an account, you still have time to open an account with Financial Spreads and qualify. All you need to do to...read article: Financial Spreads Cricket Tickets.
Cricket Tickets with Financial Spreads, updated 09-May-08
Financial Spreads have two pairs of tickets to see England v New Zealand at Lord's next week and there aren't too many catches especially if you're an existing client who has placed a few bets....read article: Cricket Tickets with Financial Spreads.
Financial Spreads Offer, updated 02-Oct-07
Financial Spreads Offer: ?70 offer for new accounts...read article: Financial Spreads Offer.
Spread Betting Affiliate, updated 30-Apr-13
There aren't many spread betting affiliate schemes around but you can now sign up to be a Financial Spreads Affiliate on...read article: Spread Betting Affiliate.
Q) Average Trading Results?
A) Get free trading tips, offers, price updates, important news and more!