Spread Betting Account Holders Await Results of EU Fiscal Integration Summit
|
|
 |
The regular Financial Markets Update from Simon Denham of Financial Spreads.
For today's update >> Financial Markets.
Spread Betting 9 December 2011
After closing at 5483.7, its lowest level in more than a week, the UK 100 index looks set to mimic losses in the Wall Street and Asian markets today with disappointing news coming from the EU summit.
Data released yesterday also showed China’s annual inflation rate dropped to 4.2% in November, the lowest level in more than a year. This heightened expectations of more monetary policy easing to fight the worsening global economic issues.
Not only this but a much steeper drop in producer inflation to 2.7% in November, down from October’s 5.0%, showed that the Chinese economy is hastily losing speed.
Today’s domestic data releases from the UK come in the form of British wholesale inflation, released at 09:30 London time, with British trade figures at the same time.
From across the Atlantic, US international trade numbers are being put out at 13:30 and the preliminary December Reuters/University of Michigan consumer confidence survey is released at 14:55.
Despite hopes that European Union leaders would make some progress at the summit yesterday, we were left disappointed as they failed to all agree on a resolution. The ECB also cut interest rates by 25 basis points to 1%, although that could be said to have been already priced in by the forex spread betting markets.
The overall effect on the euro – dollar spread betting market was a negative one and it shed around 75 points. This morning the pair is trading around $1.3325 and trending down along a bearish trend line. We see support at $1.33167 and resistance at $1.3370.
Investors were shedding their stock and gold positions yesterday as the days favourite was the US dollar.
The cause of this action was the speech from ECB president Mario Draghi, who said that unlimited buying of government bonds was not an option, and that there were choppy waters ahead for the single currency.
Spread betting account holders will be closely watching the second day of the EU leaders meeting and, already this morning, David Cameron has announced his rejection of the new EU treaty.
So after losing $33.5 yesterday to close at $1708.1, early bird traders have not decided their reaction to the news from the UK Prime Minister and the yellow brick is trading at $1709.4.
With equity spread betting markets plummeting, the energy sector was struggling to find support, and this led to a steep drop in crude prices.
Even news that US initial jobless claims were at their lowest level in 9 months couldn’t hold the price of black gold up. And, at time of writing, the sell-off hasn’t ended with Brent crude trading down at $107.68.
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.
'Spread Betting Account Holders Await Results of EU Fiscal Integration Summit' edited by SD, updated 09-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!
|
|
