Spread Betting Account Holders Sell FTSE 100 on Weak Sentiment
|
|
 |
The regular Financial Markets Update from Simon Denham of Financial Spreads.
For today's update >> Financial Markets.
Spread Betting 25 October 2011
We had expected to see the FTSE have a bit of profit taking this morning and, whilst the index did open slightly lower, it has been quick to bounce back to where it left off last night.
Oil majors are assisting the buyers following better than expected earnings from BG and BP and for once it would seem that investors are focusing on decent corporate news.
But of course the market isn’t really as the overriding issue remains how much of a write down private investors will accept on their Greek debts.
The losses incurred amount to billions and the resultant recapitalisation of banks required is going to make the recent bout of austerity measures announced across Europe look like a bit of a picnic in the park.
Lending will likely get frostier and frostier as investors ask “if I’m going to lend to Greece and lose over half my investment then why should I lend to Spain or Italy?”
As the battles and discussions go on behind the scenes, markets remain optimistic that the plans will be enough to prevent contagion and an EU catastrophe.
The FTSE’s two and a half month high has been attracting spread betting account holders to sell into the index as they remain doubtful of a distinct and lasting resolution.
Rather surprisingly some German consumer confidence data released today came in better than expected which is encouraging for Europe’s biggest economy.
This indicates that the European sovereign debt crisis doesn’t seem to be affecting them so much and certainly their buoyant labour market isn’t depressing German consumers like rising unemployment in the UK is.
Later on today we see US consumer confidence which could prove a bit of a market mover. Confidence is expected to rise a little but remains at low levels as the outlook for business conditions continues to struggle.
The euro moved higher against the dollar yesterday but has been trading gradually downwards in a tight range this morning to around $1.3916.
It’s likely that a lot of traders are looking to the EU summit tomorrow to talk further about the debt situation in the Eurozone, which is why ranges are so tight.
Considering the EUR/USD technical analysis, the ten-minute chart is showing the pair trading within a bullish channel, which could signal some upside. However, if it breaks through $1.3830 we could then be looking at $1.3750.
Cable has recaptured the $1.6000 level this morning, not seen for six weeks or so. The sharp bounce from below the $1.5500 level has caught some bears off guard and the pair is now back above both the 20 and 55 day moving averages.
Dollar weakness is giving the upper hand to the likes of the euro and sterling as the appetite for risk continues to improve.
The tables have turned for the gold spread trading market. Now optimism over the European debt tragedy seems to be a key driver for the precious metal, unlike previous months where pessimism had been causing investors to use gold as a hedge.
Market participants also saw the usual suspects help gold increase, with a weaker dollar making the commodity more appealing. In addition, the seasonal benefit of the wedding months in India meant that demand for physical gold was high as the yellow metal is a favourite gift.
All in all, gold finished the day up $12, ending the day at $1652.6 and at time of writing we haven’t seen substantial direction added, as it trades at $1654.7.
As the gap between supply and demand narrowed for crude yesterday, traders piled in to the liquid stuff.
The weaker US dollar and higher equity market were also both working hard to help push the energy sector higher.
Yet another boost was given by estimates that China’s growth remains resilient and Japan’s economy is recovering fast after the devastating earthquake and tsunami, meaning that demand for the liquid stuff is still strong. Brent is a few cents higher at $111.55 at the time of writing.
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 on Weak Sentiment' edited by SD, updated 25-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!
|
|
