Dax Spread Betting Market Recovers After Japanese Earthquake

Spread Trading 30 Mar 11

Today's update see » Financial Markets.

Spread Trading 30 Mar 2011

The FTSE just popped higher towards the close last night and once again it went against the grain when anyone would have thought that the news flow would have encouraged a sell off.

The bulls seem to remain intent on sending markets back towards their 2011 highs and again today the FTSE has opened higher after a strong move up by US markets and decent gains from Asia overnight.

The FTSE spread betting market is around 5950 at the time of writing with our price having been as high as 5970 earlier.

The break above the near term resistance of 5920/30 is another small victory for the bulls and now they’ll be targeting a move above 5970 and then onto 6000. To the downside 5870 and 5835 are seen as support levels.

All this in the face of continued bad news from a lot of “ordinary” people’s point of view as another set of data yesterday spelt our serious problems for the UK consumer.

Real income, so when you take inflation into account, fell for the first time in twenty years, confirming the downward pressure on wages. In addition, inflation within the OECD, thirty four countries from across the developed nations, has risen to its highest in almost two years and once again food prices have been the main reason for the rise.

So pressures are coming from all angles as disposable income is declining and prices are rising. The next few years are going to be a real struggle; I don’t mean to be so pessimistic this morning but it’s hard not to be.

Well at least equity markets seem to be happy.

The German Dax in particular is seeing a renewed bit of strength after being one of the indices that suffered the most following the Japanese earthquake. It’s back above the 7000 level, where it was just before the quake, but still remains some six percent from its highs compared to the Dow’s 0.005%, so US markets are just a thumbnail away from hitting fresh highs for the year.

There is the odd bit of good news and today we get the prelude to Friday’s NFP as the ADP private payroll number is released. With last week’s revision upwards for US GDP the expectations are high for a number of at least 200k.

This is not seen as important as the NFP but is could provide a bit of volatility over the short term if it’s much higher or lower than expected.

Sterling neared its two month low against the Dollar yesterday after an index of UK retail sales fell to a nine month low in March. However Cable has had a jump this morning, despite expectations that the Confederation of British Industry index will drop to minus two, which will be the lowest since June.

The pair has support at $1.5939, yesterday’s low, and resistance at $1.6043, yesterday’s high.

There was a still bit of good news for the Dollar yesterday when the Fed Bank of St Louis President said that US recovery is well on track and may be able to reduce $100bn off its original plan to buy $600bn in Treasuries.

However, this seemed to have no effect and the Euro was higher yesterday. The single currency has fallen back a bit this morning and we have support at $1.4044, yesterday’s low, and resistance at $1.4150, yesterday’s high.

It appeared that a bit of risk taking was back on the cards as equity markets were on the up and we saw the gold spread betting market pull back. With the ongoing sentiment in the air of interest rates rising investors are becoming more positive about the economic outlook in general.

Gold futures fell to an 11 week low at $1417.50 as all the data which comes out of the US is suggesting a rate rise is imminent. We could see some sideways movement over the short term with support at $1410.10 and resistance at $1423.30.

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 30 Mar 11' edited by SD, updated 30-Mar-11

Related Articles:

Bargain Hunting Causes Gold Futures to Rebound, updated 30-Jan-13
In gold futures trading, as we approached the support around the $1,640 level, bargain hunters came back into the precious metal and so we saw a rebound of $8.8 to $1,663.1. Also, reports that the...read article: Bargain Hunting Causes Gold Futures to Rebound.

Dow Jones Spread Betting Index Hits 5-Yr High amid Strong US Data, updated 29-Jan-13
Onto the financial markets, and yesterday's US trading session saw another intraday record for the Dow Jones spread betting index as investors lifted it to a five year high at 13,915. Whilst durable goods...read article: Dow Jones Spread Betting Index Hits 5-Yr High amid Strong US Data.

Strong German Data Sees FX Spread Betting Investors Buy the EUR/USD, updated 28-Jan-13
In FX spread betting, better-than-expected German investor confidence figures pushed the euro 87 points higher against the US dollar on Friday, with the pair rising to $1.3459. Although the tone at the...read article: Strong German Data Sees FX Spread Betting Investors Buy the EUR/USD.

Index Spread Bets: Apple Sell-Off Fails to Unsettle the Dow, updated 25-Jan-13
Yesterday, US markets managed to shrug off the early bearish influence from a 12% nosedive in Apple, with the Dow Jones heading upwards to close 50 points up at 13,821. The rebound was supported...read article: Index Spread Bets: Apple Sell-Off Fails to Unsettle the Dow.

Dow Jones Rises after Upbeat Earnings from Google and IBM, updated 24-Jan-13
In stocks and shares news, some good earnings from Google and IBM also helped to send the Dow higher, with the index rising by 70 points to 13,780. On the other hand, Apple missed its forecasts, sparking a...read article: Dow Jones Rises after Upbeat Earnings from Google and IBM.

Strength from the US and Asia Boosts the FTSE Spread Betting Market, updated 23-Jan-13
The action from Central Banks continues to drive equity markets higher and this morning the strength of US and Asian markets is giving the FTSE spread betting market a boost, taking it some...read article: Strength from the US and Asia Boosts the FTSE Spread Betting Market.

Financial Spread Betting: Will Cameron Speech Push the FTSE Higher?, updated 22-Jan-13
The speech will now take place tomorrow morning and so financial spread betting investors should be aware that there could be some temporary reaction. Earlier in the trading session, the markets are...read article: Financial Spread Betting: Will Cameron Speech Push the FTSE Higher?.

FTSE 100 Nears the 6200 Level as Bullish Momentum Continues, updated 21-Jan-13
As mentioned, the stock markets are pushing onto new highs this morning and overnight we saw the FTSE 100 almost hit 6200. 6140-50 had previously been the peak of our ambitions and so we can...read article: FTSE 100 Nears the 6200 Level as Bullish Momentum Continues.

Poor Phili Fed Data Causes a Spike in the Price of Gold, updated 18-Jan-13
Across the pond, the Dow Jones didn't even flinch after some really bad Phili Fed data, which did lead to a swift safe haven spike in the price of gold. Some commentators have been talking about a seismic...read article: Poor Phili Fed Data Causes a Spike in the Price of Gold.

Crude Oil Trading: WTI Crude Gains as US Oil Inventories Decline, updated 17-Jan-13
A surprise drop in weekly US oil inventories pushed the price of WTI crude up by $0.73 yesterday to $94.14 a barrel. The effect of the inventories report was so strong that the move even came despite a...read article: Crude Oil Trading: WTI Crude Gains as US Oil Inventories Decline.

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