The Pre-Budget Report and the FTSE 100
|
|
 |
Trading Features / Strategies from Simon Denham of Capital Spreads.
After all the excitement in Westminster yesterday today we wake up to...well not very much.
The FTSE is called virtually unchanged as traders try to get a handle on Chancellor Darling’s stimulus package but the reality is that our markets are being buffeted by the winds from overseas.
Yes the FTSE rallied by 370 points (9.7%) yesterday but the DAX put on 430 (10.3%), the CAC 290 (10.1%) and I am pretty sure that Captain Darlings time at the despatch box was not exactly the reason for their moves. Since the close of business, UK time, last Friday the S&P and Dow are both up over 12.5 % so the bounce in the UK indices, whilst welcome, is not exactly world beating.
The Chancellor seems to be stuck in that most pernicious of tread wheels of believing that “if we can just get people spending, we can get out of this hole”.
For Japan in the nineties this was indeed the case, as the country had limited debt on a personal level and a trade surplus. The only similarity between us now and them then was that in both cases the banking sector was a busted flush (hardly a comforting comparison).
Financial Spreads >>
"With FinancialSpreads.com you get all the normal
advantages of Spread Betting plus..." >> read
Financial Spreads review.
|
Unfortunately the UK enters this downturn with a serious impediment to a turnaround in that average “savings” are actually negative. The size of the PSBR is huge but this is not necessarily the problem. We had similar ones when interest rates were significantly higher than they are now. At least the servicing of the debt will be cheaper this time around.
The problem is that even after 15 years of ‘growth’ the Government was still running a deficit (of around 3%). This ‘core’ deficit must therefore be seen as endemic and virtually intractable. In the last ‘boom’ the country was operating a 2% surplus fully 5% better than Mr Brown’s best efforts.
I fear that the UK will suffer far more than its continental cousins in the coming years. The Fiscal stimulus is all about giving people more cash in their pockets (presumably to buy ever more imports) and to help out those in trouble. Unfortunately there was precious little from the State in the way of increased Infrastructure build (loft insulation, is this all he could afford?).
The above comments do not constitute investment advice and neither Capital Spreads nor Clean Financial accept any responsibility for any use that may be made of them.
Capital Spreads >>
"With Capital Spreads you get all the normal
advantages of Spread Betting plus..." >> read
Capital 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 Capital 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.
'The Pre-Budget Report and the FTSE 100' edited by DB, updated 25-Nov-08
Related Articles:
Daily Spread Betting Blog, updated 23-May-12
The FTSE financial spread betting market is down 75 points in mid-morning trading, as hopes for today's Eurozone summit evaporate. The Germans have once again stated their firm opposition to Eurozone bonds as...read article: Daily Spread Betting Blog.
Spread Betting Prices, updated 23-May-12
Spread betting prices - a live spread betting price guide plus which spread betting companies offer live prices, how to use them and...read article: Spread Betting Prices.
Spread Betting Guide, updated 21-May-12
Spread Betting Guide: What is spread betting, how to spread bet, spread betting advantages, spread betting examples and...read article: Spread Betting Guide.
Spread Betting Guide to Making a Trade, updated 21-May-12
Spread Betting Guide to Making a Trade: A step-by-step guide on how to place a spread bet including a fully worked example and...read article: Spread Betting Guide to Making a Trade.
Stock Market Opening and Closing Times, updated 21-May-12
Stock Market Opening and Closing Times: a look at when the leading European, US and Asian stock markets open and close. Plus, where to get stock market index trading analysis, news and...read article: Stock Market Opening and Closing Times.
Spread Betting v Share Trading, updated 21-May-12
Some people see spread betting and standard trading as two different sides of the same coin. Whilst the pair do share similarities, it is fair to say that...read article: Spread Betting v Share Trading.
Sectors Spread Betting, updated 21-May-12
Sectors spread betting is a convenient way of taking a position on an entire industry by giving investors exposure to a basket of underlying stocks in a particular sector. Sectors are groups of firms that all...read article: Sectors Spread Betting.
First Page << 1 2 3 4 5 6 7 8 9 10 11 12 >> Last Page
Also see:
Trading Features / Strategies Index – an index of all the Trading Features.
|
|
Q) Average Trading Results?
A) Get free spread betting tips, offers, price updates, important news and more!
|
|
