Spread Trading 28 Jul 09 - Spread Bettors Sell the FTSE 100

Spread Trading 28 Jul 09

Today's update see » Financial Markets.

Spread Trading 28 July 09

The market’s relentless march continues higher this morning assisted by a last minute recovery in US markets last night. Although at one point the US threatened to end the incredible run we have seen recently.

US data assisted the move higher after new home sales recorded their largest monthly rise in eight years.

At the time of writing we are above the 4600 level, up some 20 points. As has been widely reported yesterday and today, if we end the session higher the FTSE would have recorded its longest run of consecutive gains ever since the index was established in 1984.

Despite the records and the relentless rally spread betting clients continue to sell into the strength. There was a brief moment last night when we saw a few buyers creep in, but the higher the FTSE goes, the more investors expect a sharp pull back. The bearish clients are out numbering the bulls at the moment.

The adage “the trend is your friend” is certainly not being adhered to by clients at the moment.

While we wait in anticipation to see if the FTSE has enough momentum to break its record, today’s major piece of economic data is comes in the form of US consumer confidence figures.

With the housing data looking like it has turned the corner in the US and stock prices remaining on the rise, it wouldn’t come as much of a surprise to see the number come in higher than expected, particularly since the consensus is that it is expected to decline just slightly from 49.3 to 49.0.

Certainly in Europe we are seeing a much more upbeat consumer as yesterday saw German consumer confidence numbers rise for the third month in a row.

Indications that the consumer is starting to come back out of its shell are encouraging and will certainly go some way to help assist with a recovery, however if consumers read too much into the green shoot argument then their confidence could act as a catalyst to inflation which, along with rising unemployment, is the biggest concern for all of us in six months to a year from now.

On top of this the price of crude oil is on the way back up with Brent above $71 and Nymex not far off $69.

Although this is half of the high we saw last year when oil prices spiked to $140, it will only add to inflationary pressures.

Oil markets are testing their highs for 2009 and for the time being seem to be looking forward to Friday’s US GDP number. Before then we have American Petroleum Institute data later today and tomorrow’s usual weekly inventory number from the EIA.

BP’s good run higher since the beginning of July has be halted this morning after announcing its large decline in profits. That hardly comes as a surprise. They are not only seeing less demand for their product but they are getting half the price for it compared to 12 months ago.

BP’s rival Shell announces their figures on Thursday and are higher this morning whilst BP is lower. There seems to be a little shift from BP into Shell this morning. Shell has underperformed so far in 2009, down some 11%, whereas BP is nearly flat on the year.

There has been little to report on the currency front of late as prices continue to swing neatly within small ranges.

The interesting thing is that sterling has been a beneficiary of the recovery in stock prices since March. Nevertheless the recent rally in equities has done little to boost the currency further.

GBP/USD remains capped by the $1.6600 level and sterling/euro, whilst supported by the $1.1500 mark, cannot seem to shift above $1.6650.

Under no circumstances are the comments and the information provided herein to be considered an offer or solicitation to invest and nothing herein should be construed as investment advice.

Neither CleanFinancial.com nor Financial Spreads or any contributing author accept any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.

Financial Spreads » "With FinancialSpreads.com you get all the advantages of
Spread Betting as well as commission free CFD Trading on 2,500+ markets, 24 hour trading, professional level charts and..." read Financial Spreads review.

Risk Warning: Spread betting and CFD trading carry a high level of risk to your capital and you may lose more than your initial investment. Spread betting and CFD trading 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 Trading 28 Jul 09' edited by SD, updated 28-Jul-09

Related Articles:

Financial Markets, updated 17-May-13
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-13
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.

FTSE to Underperform as Constituents Go Ex-Dividend, updated 24-Apr-13
Although today's start is expected to be firm, the FTSE is set to under perform its peers as some constituents go ex-dividend, knocking 9 points off the index. The corporate earnings in the US continued to...read article: FTSE to Underperform as Constituents Go Ex-Dividend.

Renewed Demand Sees the Gold Rebound Continue, updated 23-Apr-13
Gold continued its rebound yesterday, with the online spread betting market gaining $17.7 to $1,426.2, on reports of renewed demand for coins, bars and jewellery. After suffering from such a violent...read article: Renewed Demand Sees the Gold Rebound Continue.

Index Trading: Nikkei Hits 5yr Highs as Monetary Policy Remains Unchallenged, updated 22-Apr-13
Asian markets are also trading sharply higher, led by the Japanese Nikkei which is nearing a 5 year high. Japan's optimism seems to be founded on the fact that they didn't receive any explicit singling out at the...read article: Index Trading: Nikkei Hits 5yr Highs as Monetary Policy Remains Unchallenged.

Dow Jones Falls as US Corporate Earnings Disappoint, updated 19-Apr-13
The US corporate earnings season continued to disappoint investors yesterday with the Dow Jones falling 110 points to 14,496 as a result. The pessimism was also supported by weaker than anticipated economic...read article: Dow Jones Falls as US Corporate Earnings Disappoint.

Poor Eurozone Ecostats Weaken the EUR/USD Spread Betting Pair, updated 18-Apr-13
The economic data coming out of Europe yesterday was pretty dismal, with auto sales reaching a 20 year low. Consequently, the euro dropped versus the dollar, effectively giving back the previous day's gains by...read article: Poor Eurozone Ecostats Weaken the EUR/USD Spread Betting Pair.

Improved US Housing Data Boost the US Crude Oil Spread Betting Market, updated 17-Apr-13
Better figures for the US housing sector bolstered crude oil demand yesterday, pushing the price of a barrel of US crude oil up by $1.48 to $88.83. That saved the day as crude prices had fallen to an intraday low of...read article: Improved US Housing Data Boost the US Crude Oil Spread Betting Market.

Slowing Chinese Economy Spurs Gold's Largest Drop in 33-Yrs, updated 16-Apr-13
Those trying to catch a falling knife after Friday's plunge were in for a nightmare session yesterday as the gold spread betting market posted an even bigger drop. The precious metal lost an incredible $129.2 to...read article: Slowing Chinese Economy Spurs Gold's Largest Drop in 33-Yrs.

Bearish Momentum Sees the Gold Spread Betting Market Break Below $1500, updated 15-Apr-13
The bearish momentum in gold undoubtedly gathered pace on Friday as the market price crossed below the psychologically important $1,500 mark. In a violent nosedive, the precious metal plunged $72.7 to...read article: Bearish Momentum Sees the Gold Spread Betting Market Break Below $1500.

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 daily Spread Trading update from Financial Spreads, for more articles see the Spread Trading News Index.

Q) Average Trading Results?

A) Get free trading tips, offers, price updates, important news and more! All Free - Click here!

Risk Warning: Spread betting and CFD trading carry a high level of risk to your capital and you may lose more than your initial investment. Spread betting and CFD trading 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.

The contents on CleanFinancial.com are for information purposes only and are not intended as a recommendation to trade. Nothing on this website should be construed as investment advice.

Neither CleanFinancial.com nor any contributing company/author accept any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.

* Tax law is subject to change or may differ if you pay tax in a jurisdiction other than the UK.

1) Daily Trading Tips

2) Financial Tips

3) Financial Tipping