Spread Betting Account Holders Sell FTSE 100 Despite Chinese Data
|
|
 |
The regular Financial Markets Update from Simon Denham of Financial Spreads.
For today's update >> Financial Markets.
Spread Betting 17 January 2012
China has proven today to some degree that the argument between a soft and hard landing is slowly being won by the soft camp.
Their GDP figures overnight were always going to be a focal point of trade today as we remain heavily reliant on the Asian economies to fuel global growth.
As a result, when the number came in at 8.9%, higher than the expected 8.7% it resulted in a strong rally for base metals which has followed through to mining stocks so far this morning.
Previously in this comment we have noted that China is very different to Western economies and therefore Western thinking. With their considerable reserves they have the firepower to bring things down slowly if they want to and for now the plan seems to be working.
With the world’s second largest economy still growing near 9% the prospects of a global recession are limited, even if things in Europe continue in the fashion they are going.
The increased optimism in equities seen throughout this year is very encouraging for the outlook in 2012. The old statistic that the equity market will have a positive year if the S&P 500 finished higher after the first five days of trading is certainly looking to play out, although it is very early days.
At the time of writing we are calling the Dow to open higher by 120 points from its close on Friday. It will be interesting to see whether that can be maintained when US investors get back into their offices later this morning after their long weekend.
Often you see that US futures don’t like being led by European markets and can reverse their move, however this time round the rally might be sustained simply because of the GDP data from China. Currently the Dow is marking a near 6 month high.
Our spread betting account holders remain sceptical however, presumably with the belief that the Eurozone woes will rule. Selling into the recent strength has left them nursing a few wounds this morning.
Economic data starts to pick up again today with CPI numbers from the UK. The year on year figure is due to decline from 4.8% to 4.2% mainly due to the fact that last year’s VAT hike has now come out of the figures.
Expectations continue to point to further declines in the rate which will be most welcome for the UK consumer.
The euro has managed to rally this morning on the back of equity markets moving higher and increased risk appetite. The strength comes as quite a surprise and goes against the trend considering the news for the single currency hasn’t been good at all.
S&P followed their ratings cuts of countries with a cut to the credit rating for the Eurozone’s “big bazooka” fund. Despite the rally this morning, we could very quickly see this unwind, especially if the other major credit rating agency Moody’s comes in with the cull.
The EUR/USD spread betting market is currently trading at $1.2752 and traders going long of the market should be cautious here.
Gold’s price was boosted yesterday by a slightly weaker dollar as risk adverse investors searched for an alternative safe haven for their assets.
Unfortunately, with low volumes due to a US holiday, the boost was not one worth shouting about and by the end of the session the yellow metal had only gained $4.7 to end at $1643.4.
At time of writing though, it seems that the Americans feel they missed out on the small rally and are catching up as the precious metal is up at $1660.6.
Grasping little direction from the equities markets, crude turned to the single currency for guidance, jumping on the back of a market rally.
Not only this but, after looking at the tensions between Iran and the West, investors appear to feel that a decline in prices is a good opportunity to go long. Currently, Brent crude oil trades up at $112.15.
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 Sell FTSE 100 Despite Chinese Data' edited by SD, updated 17-Jan-12
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!
|
|
