French CAC Falls on Expectation of Banking Downgrades and Greek Default
|
|
 |
The regular Financial Markets Update from Simon Denham of Financial Spreads.
For today's update >> Financial Markets.
Spread Trading 12 September 2011
Traders have started the week with a sea of red as European indices are falling, particularly the French stock market which is being absolutely battered.
The French CAC 40 is now below the lows of August and so the index is only 15% or so from the lows of March 2009 following the last banking crisis. As a comparison the FTSE 100 is still over 30% off those lows.
For more on the struggling European banking sector please also see our feature: French Banking Stocks Tumble on Expectations of Downgrades and Greek Default.
The banking sector sell off this morning has brought the UK index down to 5100 at the time of writing, just above its recent lows.
Key near term support is at 5050, which looks dangerously like being tested, meanwhile to the upside resistance is rather further away, expected at 5200/85 and 5325.
Following on from the back end of last week, the shorters are still the main players in the FX spread betting market trading the Euro.
The single currency is trading at almost a seven month low against the Dollar, but more astonishingly, its lowest since 2001 against the Yen.
After all the talk last week of the German court deciding that funding the Greek rescue is legal, it appears now the Eurozone is preparing for a Greek default.
The Euro - Dollar forex pair is currently trading at $1.3559, which is below its new resistance level of $1.3650, so traders should watch for further potential downside.
Friday morning’s session saw many commodities spread betting markets lose a lot of ground as the Dollar strengthened and therefore they were more expensive in Dollar terms.
Whilst gold fell, it struggled to stay down as concerns over Greece defaulting on its debt obligation flared. Equity markets felt the brunt of this, with investors pulling their money out of riskier assets and throwing their cash into safe havens.
The yellow brick ultimately ended the day down $13.7 at $1855.5. At time of writing though, despite the falling equity markets, gold still seems to be out of favour, as it’s trading down further at $1835.0.
The crude oil spread betting market’s inverse correlation with the US Dollar was apparent on Friday. This came as traders put their money in the rediscovered currency safety haven, seeing as the Swiss Franc has now been capped and no longer has that hedging appeal.
So as the Dollar rallied, Brent slipped off and ended the day just over 150 points lower at $112.58. The losses are being extended at time of writing though, with the commodity trading down further at $110.91.
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.
'French CAC Falls on Expectation of Banking Downgrades and Greek Default' edited by SD, updated 12-Sep-11
Related Articles:
Financial Markets, updated 22-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 15-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.
Bargain Hunters Boost Gold Futures as Greece Secures Bailout Tranche, updated 11-May-12
Buyers returned into the gold futures market yesterday, albeit at a cautious pace. They pushed the price of the precious metal higher and...read article: Bargain Hunters Boost Gold Futures as Greece Secures Bailout Tranche.
Dow Jones Futures Sink as Greek Politicians Fail to Form Coalition, updated 10-May-12
Amid growing concern about the turmoil in Greece, and the failure to put together a coalition government, the Dow Jones extended its losses for...read article: Dow Jones Futures Sink as Greek Politicians Fail to Form Coalition.
French Banks Weigh on CAC 40 Spread Trading Index Over Greek Exit Concerns, updated 09-May-12
The losses for the French banks would be considerable if Greece exited the euro. The CAC 40 index dropped 2.8% yesterday, one of the worst...read article: French Banks Weigh on CAC 40 Spread Trading Index Over Greek Exit Concerns.
Sterling/Euro Financial Spread Betting Market Hits 3 Year Highs on Euro Woes, updated 08-May-12
Sterling is currently gaining from the euros woes. The sterling/euro financial spread betting market is now trading at a three year high. However,...read article: Sterling/Euro Financial Spread Betting Market Hits 3 Year Highs on Euro Woes.
Nymex Crude Oil Futures Fall as US Recovery Remains Weak, updated 04-May-12
The price of Nymex crude oil futures posted a steep fall of $2.68, yesterday. Discouraged by the anaemic US recovery, buyers did not...read article: Nymex Crude Oil Futures Fall as US Recovery Remains Weak.
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!
|
|
