Spread Trading 6 May 09 - Barclays and Lehmans

Spread Trading 6 May 09

Today's update see » Financial Markets.

Spread Trading 6 May 09

Despite a little move higher in Asia the FTSE is taking a small breather this morning and some profit taking is creeping in. The market is expected to fall sixteen points on the open to 4320 and this after it rejected yesterday’s highs and failed to test 4400.

Resistance is expected around the 4415 level, but in the absence of reaching that level the market may have run out of steam as investors tread cautiously ahead of the tomorrow’s US stress test results.

Recently the market seems to have been taking the bad news in its stride and any good pieces of economic data have helped boost us higher, the hallmarks of a bullish market. Having said that, this morning the FTSE 100 has struggled to take cheer from much better than expected consumer confidence figures.

Despite us still being in the middle of a deep recession and the recovery being a long way off, the risks of us remaining in a depression have abated somewhat and recently little glimmers of hope have appeared.

House prices show signs that their falls are slowing, the stock market has posted a tremendous gain in April and the banks seem to be getting their act together. On top of this the weather has been good to us and the tumble weeds blowing across the high streets seem to have disappeared. It does not come as too much of a surprise that we all feel a little better about the outlook. The Nationwide data rose the most in nearly two years, but still the reluctance of more bulls joining in the party shows great apprehension ahead of tomorrow.

It is hard to see today’s session being one to remember from a volatile point of view, with economic releases being very thin on the ground. Whilst our spread betting clients remain very short the FTSE, having sold into the recent strength, many other investors are most likely going to sit on their hands and wait for the Barclays trading statement tomorrow, then the BOE and ECB interest rate decisions followed by the results of the stress tests before committing anything more to the market.

We have already had some news of the US banks positions filter through to the market. It is clear that there will still need to be some substantial bolstering of balance sheets. Many banks are still facing large write downs and UBS posting a Q1 loss yesterday has given investors a small bite of reality.

Forex markets saw some excitement yesterday with cable breaching the $1.5000 mark in style, pushing onto $1.5100 and beyond. This morning we are back to $1.5040 at the time of writing having hit a low of $1.5000, which is now the near term support having acted as resistance in the past.

A few sellers crept in yesterday and more this morning as clients seem to think that cable looks a little “toppy”. They do not expect the $1.5000 to hold up and in the absence of further strength following the good confidence data overnight, the clients are enjoying this move down from the recent high.

Sterling’s strength against the euro continued yesterday and although we are a little weaker this morning we moved quite aggressively from €1.1200 to €1.1300, mainly as a result of the good manufacturing data yesterday morning.

The trend is in sterling’s favour for the moment and whilst support is expected around €1.1285 and €1.1250, resistance is seen around €1.1350 and then €1.1380.

Today however, the currency markets are likely to be quite quiet with the lack of data out and ahead of the interest rate decisions tomorrow.

Gold once again disappointed bulls yesterday. An attempt at pushing higher only reached $910-$915 before being swiftly rejected. Once again we are hovering around the $900 level. If the precious metal does break through $910-15 then that could open up a test of $950.

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 6 May 09' edited by SD, updated 06-May-09

Related Articles:

Currency Spread Trading: EUR/USD Slips as S&P Downgrade Spanish Debt, updated 11-Oct-12
In yesterday's currency spread trading, the euro tumbled sharply as Standard & Poor cut Spain's credit rating from BBB+ to BBB-. This is just 2 notches above junk status and...read article: Currency Spread Trading: EUR/USD Slips as S&P Downgrade Spanish Debt.

Commodity Spread Betting: Bleak IMF Outlook Weighs on Gold Futures, updated 10-Oct-12
Gold futures declined for the third day in a row yesterday, dropping $12.55. Commodity investors were put on the back foot by a bleak prediction from the International Monetary Fund regarding the...read article: Commodity Spread Betting: Bleak IMF Outlook Weighs on Gold Futures.

FTSE Futures Rise on Hopes of Stimulus After IMF Downgrades Chinese Growth, updated 09-Oct-12
FTSE futures rose as investors took the IMF downgrades to Chinese growth forecasts as a sign that more stimulus was imminent. Asian stocks, such as the Hang Seng and China Enterprises index, were also...read article: FTSE Futures Rise on Hopes of Stimulus After IMF Downgrades Chinese Growth.

FTSE Spread Betting Market Tumbles Despite Drop in US Unemployment Rate, updated 08-Oct-12
Friday's Non-Farms data saw the rate of US unemployment fall to its lowest level since President Obama came into office in 2009. Nevertheless, the speed with which the FTSE has fallen from the...read article: FTSE Spread Betting Market Tumbles Despite Drop in US Unemployment Rate.

Forex Spread Bets: Euro Surges as ECB President Pledges to Buy Government Bonds, updated 05-Oct-12
ECB President Mario Draghi pledged to buy government bonds if member countries get in trouble. This encouraged a shift in forex market sentiment towards a risk-on day and the euro gained 111 points to...read article: Forex Spread Bets: Euro Surges as ECB President Pledges to Buy Government Bonds.

WTI Crude Oil Spread Betting Market Slumps on Signs of Chinese Weakness, updated 04-Oct-12
Defying an escalation of conflicts in the Middle East, the price of WTI crude oil posted a sharp sell off yesterday. The move was triggered by signs that China's expansion is losing steam faster than...read article: WTI Crude Oil Spread Betting Market Slumps on Signs of Chinese Weakness.

FTSE Futures Fall as Australia Cut Benchmark Interest Rate, updated 03-Oct-12
Australia cut its benchmark interest rate by 25 basis points, as they feared deterioration in the global outlook and further slowdown in the Chinese economy. As a result, the FTSE futures fell...read article: FTSE Futures Fall as Australia Cut Benchmark Interest Rate.

Commodity Spread Trading: Gold Finds Support from Sluggish US Economy, updated 02-Oct-12
Commodity spread traders seem to think that the ongoing European sovereign debt crisis and a sluggish US economy are good enough reasons to support gold. Bargain hunters pushed prices higher as...read article: Commodity Spread Trading: Gold Finds Support from Sluggish US Economy.

FTSE Spread Betting Market Rises Despite Weak September for UK Shares, updated 01-Oct-12
The FTSE spread betting market has risen despite some negative overnight news and a poor end to the last quarter. The last few days of September were woeful, as shares recorded their biggest declines since...read article: FTSE Spread Betting Market Rises Despite Weak September for UK Shares.

Dow Jones Spread Betting Market Rallies on Fifth Spanish Austerity Package, updated 28-Sep-12
The Dow Jones spread betting market rallied following the announcement of the fifth austerity package by Prime Minister Mariano Rajoy, seen as a condition for a bailout. Additionally, the equities markets were...read article: Dow Jones Spread Betting Market Rallies on Fifth Spanish Austerity Package.

First Page << 13 14 15 16 17 18 19 20 21 22 23 24 >> 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