Indices Spread Betting Markets Struggle on Prospects of Difficult 2012
|
|
 |
The regular Financial Markets Update from Simon Denham of Financial Spreads.
For today's update >> Financial Markets.
Spread Betting 20 December 2011
The indices spread betting markets can’t get the momentum they need to get this year’s Christmas rally underway.
The markets remain depressed by the prospect of a difficult year ahead with banks needing to further deleverage and build greater capital reserves at a time when liquidity will be vital to keeping our economies going.
The Eurozone debt crisis isn’t getting any better either so the outlook is bleak to say the least.
Banks are being hit from all angles as the Basel III safety buffers are due to come in place from 2013 and the Vickers report is set to be implemented to ring fence retail and “casino” banks. Increasingly it seems that the investment banker is being confined to the history books.
George’s olive branch to the likes of HSBC and Standard Chartered yesterday may go some way to persuading them to stay in the UK, however full implementation is not due until 2019. As a result, there’s no question that the rules will change again before then and probably be watered down.
They will have to also comply with any changes in Europe as one rule for UK banks won’t necessarily work when there are different rules for other banks.
The sad reality that the UK taxpayer is going to have to come to is that our “investment” in RBS is unlikely to see any sort of return.
As we saw with Northern Rock recently, the taxpayer made a loss, but less of a loss than had the sale gone ahead at any time in the future. Value was slowly being depleted bit by bit until eventually there may not have been a buyer at all.
With RBS it’s a similar story. For as long as the government holds its massive stake in the bank it will continue to have its wings clipped and returns will be much smaller than in the boom years.
We may be holding onto our stake for many years to come as with many investments that go wrong, a short term one can suddenly turn into a very long term one.
The FTSE’s in the red at the time of writing having opened in negative territory and stayed there at around 5330.
The only small piece of good news this morning is that of a Nationwide consumer confidence measure which came in higher than expected. Having said that, this rise is from a record low since 2004 and it is still way below its long term average.
The bounce could be down to the lower of inflation expectations however it may not last long with unemployment continuing to rise and growth expected to remain flat. It will be interesting to see how the Gfk consumer confidence figure comes out overnight.
There were no surprises that the euro started the week on a downer after Europe failed to stump up the €200bn they need to bailout Eurozone governments.
The coup was €150bn, which of course doesn’t include the €31bn demanded of the UK after Cameron vetoed the EU treaty plan. Finance ministers are now relying on countries such as Sweden and Poland to put their hands in the pockets and help out with contributions.
If we actually take a step back though, we realise that even if the €200bn had been raised, it wouldn’t make a difference since Italy alone needs €300bn in refinancing.
This morning, the euro is slightly up against the dollar at $1.3012 with support at $1.2980 and resistance at $1.3050.
After breaking for air above the $1600.0 mark, gold found it hard to stay afloat and fell back at $1593.6, down $4.4 for the session.
Most of the downward pressure was supplied by the strengthening US dollar, but also the ECB’s parrot-like rhetoric despite growing signs that markets are pricing in a return to recession.
Currently the yellow brick is trying to get that breath of air again and is trading at $1600.3.
Not surprisingly, the main driver in the energy sector was the instability seen in Asian markets yesterday, with the death of North Korea’s leader Kim Jong Il.
It still only helped Brent crude oil gain 4 ticks to close at $103.80 for the day, but perhaps the meeting in Rome today will provide more direction. This will involve many nations, including the US and South Arabia, discussing sanctions on Iran’s oil exports, potentially disrupting future Middle Eastern supplies.
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.
'Indices Spread Betting Markets Struggle on Prospects of Difficult 2012' edited by SD, updated 20-Dec-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!
|
|
