FTSE Index Trades Lower as Central Bank Decisions Pass as Expected
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UK Market Comment, 8 December 2011
Closing comments from David Jones, Chief Market Strategist, IG Index:
Heading into the close the FTSE looks set to finish around 40 points lower on the day.
The two central bank interest-rate decisions passed as expected today with no change for the UK and a 25 basis point drop from the European Central Bank. But it was the comments in the press conference after which pushed markets lower, as Mr Draghi appeared to pour cold water on expectations of more bond purchases by the central bank.
This seemed to push responsibility firmly back on individual governments - a fact that perhaps still doesn’t sit too comfortably with a lot of indices spread betting investors.
Although the UK 100 has weakened today, it’s still very much in the range for the month so far. Overall, there is still a wait-and-see feeling to the market ahead of the latest EU summit which starts this evening.
How and where to spread bet on:
UK 100, where to find free charts, live pricing, how to trade etc >> UK 100 Spread Betting
Indices, where to find free charts, live pricing, how to trade etc >> Indices Spread Betting
The above comments do not constitute investment advice and neither IG Index nor Clean Financial accept any responsibility for any use that may be made of them.
IG Index » "With IG Index you get all the normal advantages of
Spread Betting plus 8000 markets, narrow spreads, advanced charting,
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UK Market Comment, 7 December 2011
Closing comments from Yusuf Heusen, Sales Trader, IG Index:
Heading into the close, the FTSE 100 looks set to finish down around 21 points, at around 5547.80.
We don’t know the name of the German official whose comments have torpedoed this morning’s rally, but he has certainly provided a nasty shock to markets.
The gains we saw this morning have disappeared entirely, and for a while it seemed as if a full-blown rout was in the offing for markets, with the FTSE down over 1%, and Wall Street turning decidedly bearish.
Essentially, this anonymous official has ruled out the idea that the Eurozone can get away with enforcing budget discipline via minor changes to legislation, which had been mooted by President van Rompuy.
Instead, Germany have insisted on a full-blown treaty change, which opens up a whole Pandora's Box of problems, not the least of which is getting new treaties past national parliaments without triggering referenda.
In addition, the official said that Berlin was less optimistic about making real progress this Friday than it had been a week ago.
This has been sufficient to send investors scurrying for safe havens, abandoning shares just as quickly as they rediscovered them last week.
There are still optimists out there though, since markets have managed to bounce off the lows for the day.
However, today has been the necessary, albeit uncomfortable, reminder that trying to get Eurozone politicians to agree is like herding cats; tricky, frustrating and a very lengthy process.
How and where to spread bet on:
FTSE 100, where to find free charts, live pricing, how to trade etc >> FTSE 100 Spread Betting
Wall Street, where to find free charts, live pricing, how to trade etc >> Wall Street Spread Betting
The above comments do not constitute investment advice and neither IG Index nor Clean Financial accept any responsibility for any use that may be made of them.
IG Index » "With IG Index you get all the normal advantages of
Spread Betting plus 8000 markets, narrow spreads, advanced charting,
24 hour spread betting ..." » read
IG Index review.
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'FTSE Index Trades Lower as Central Bank Decisions Pass as Expected' edited by AG, updated 08-Dec-11
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