Index Spread Trading: UK 100 Struggles Despite Strong US NFP Data
|
|
 |
The regular Financial Markets Update from Simon Denham of Financial Spreads.
For today's update >> Financial Markets.
Spread Betting 10 October 2011
Again, it was the Franco-German team that everybody is looking to for answers, and they came back pretty defiantly too.
French President Sarkozy has said that by the beginning of November, they will know exactly what needs to be done to tackle the three big Eurozone issues at the moment. Specifically these issues are preventing a Greek default, recapitalising banks, and fixing Europe's economic governance.
Although Sarkozy and German Chancellor Merkel claimed they couldn't give exact details of how they aim to resolve the above, it seems that things are going in the right direction, and they are at least in agreement with each other.
Whilst on the topic of banks, the Belgian/French lender Dexia, who suspended their shares last week, is to split into a ‘good’ and ‘bad’ bank.
The Belgian and French governments will take on the responsibility of the ‘bad’ bank's losses, but it will be supported by state guarantees such as €95bn in bonds and other Eurozone nations' sovereign debt.
Despite the better than expected Non Farm Payroll data released on Friday, the UK blue chip index spread trading market only managed to gain 12 points from the open and ended up closing the session at 5303.
After heavy losses on Monday and Tuesday, investors began to shrug off doubts over the stability of the global economy, and helped the FTSE 100 gain 3.6% on the week. It seems that the spread betting markets took Friday's downgrades on both Spain and Italy's credit ratings with a pinch of salt.
With the US Columbus Day Holiday and no British economic data due for release on Monday, investors will look ahead to Wednesday's British unemployment figures and the US FOMC meeting minutes from September 20-21.
Currency spread betting investors have taken positively to the Franco-German meeting regarding recapitalising banks and the Greek rescue, and the Dollar and Yen have taken the brunt of it this morning.
The Euro is having a tasty 150 pip rally versus the Dollar, now trading at $1.3538, and the Euro - Yen spread betting market is also seeing gains.
Let's not forget Fitch's downgrade of Italy and Spain's credit rating, which is obviously a negative factor to be taken into account. However, there is finally some indication of action coming from Eurozone leaders and so, at least in the short term, the Euro will enjoy this bear squeeze.
Gold was clinging on to the back of world markets on Friday, as optimism took over once the Non Farm Payroll data had been released, showing a better than expected figure.
Then, soon after the downgrade on Spain and Italy's credit rating, the precious metal lost its grip and plummeted, finally hitting the ground at $1637.6, after losing $11.8. At time of writing, the yellow brick has clawed back Fridays losses, and is trading up at $1659.8.
The much needed improvement of 103,000 jobs in the labour market helped crude oil traders forget about the double downgrade in Europe, and offered some consolation that things might be getting better.
Black gold finished the day up at $105.68 and, considering the stronger Dollar against the Euro and the slight decline in US equities, this was a pretty good result. Currently, Brent crude is continuing its rally, trading at $106.46.
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.
'Index Spread Trading: UK 100 Struggles Despite Strong US NFP Data' edited by SD, updated 10-Oct-11
Related Articles:
Financial Markets, updated 23-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 16-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!
|
|
