Closing comments from Yusuf Heusen, Sales Trader, IG Index:
The FTSE has awoken from its slumber this morning and looks set to end the day around 15 points higher.
Markets have shaken off their Thursday morning torpor and have pushed into positive territory, helped by a decent reading on weekly US jobless claims and testimony from Fed chairman Ben Bernanke.
367,000 Americans claimed benefits last week, a lower than forecast figure, helping to keep investors broadly upbeat ahead of tomorrow's key Non Farm Payrolls figures.
Meanwhile, Ben Bernanke said that the US economy was showing signs of decent growth. He added that the future remained uncertain, evidently he's misplaced his crystal ball, and that the current debt path of the US government was unsustainable.
Taken with the improvement in US manufacturing seen yesterday, his comments will provide more succour for the bulls, although there continue to be those out there that believe that this market is simply going through yet another 'short squeeze'.
In London, miners continued to dominate the leaderboard following news of talks between Xstrata and Glencore. Xstrata itself has leapt 10%, with Vedanta and Anglo American following on behind with gains of 5% and 4% respectively.
This market continues to show remarkable resilience, making gains despite the absence of a Greek deal. Much now rests on the Non Farms tomorrow, perhaps the most important data point in the month.
How and where to spread bet on:
Xstrata, where to find free charts, live pricing, how to trade etc >> Xstrata Spread Betting Glencore, where to find free charts, live pricing, how to trade etc >> Glencore Spread Betting
The above comments do not constitute investment advice and neither IG Index nor Clean Financial accept any responsibility for any use that may be made of them.
IG Index >>
"With IG Index you get all the normal advantages of Spread Betting plus..." >> read
IG Index review.
UK Market Comment, 1 February 2012
Closing comments from Ben Critchley, Sales Trader, IG Index:
Heading into the close, the FTSE has succeeded in pushing even higher, building on this morning’s gains to post an advance of around 100 points.
This morning’s slew of positive manufacturing figures from China, the UK and Germany has been sufficient to cancel out a second weak day for US economic data.
Both US manufacturing news and the keenly-watched ADP employment numbers for January fell short of expectations, continuing the trend seen yesterday of US data failing to live up to forecasts.
Employers added 170,000 jobs during the first month of 2012, according to the private-sector report, below the forecast 185,000.
Still, a month ago markets would probably have been pleased with a gain of 170,000, so it shows how expectations have shifted over the past four weeks.
As a result, markets still appear to be broadly optimistic ahead of the climactic Non Farm Payrolls figures on Friday.
The strength of the market at present suggests that traders remain relatively optimistic that some sort of deal between Greece and its creditors can be hammered out.
And the figures from Germany and China point to continuing strength from these two nations, whose performance is so crucial to the health of the global economy.
If the FTSE manages to break above 5800 over the next few days, then an assault on the all-important 6000 level may well be on the cards.
How and where to spread bet on:
FTSE, where to find free charts, live pricing, how to trade etc >> FTSE Spread Betting DAX 30, where to find free charts, live pricing, how to trade etc >> DAX 30 Spread Betting
The above comments do not constitute investment advice and neither IG Index nor Clean Financial accept any responsibility for any use that may be made of them.
IG Index >>
"With IG Index you get all the normal advantages of Spread Betting plus..." >> read
IG Index review.
Risk Warning: Financial Spread Trading and CFDs carry a high level of risk to your capital. You may lose more than your initial investment. They 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 IG Index which is authorised and regulated by the Financial Services Authority (FSA), FSA Register number 114059.
'UK Market Trading' edited by AG, updated 02-Feb-12
Related Articles:
UK Market Trading, updated 02-Feb-12
The Late Trading Update - A quick look at the markets as they close with insight from one of the leading Spread Betting Companies...read article: UK Market Trading.
UK Market Spread Trading, updated 31-Jan-12
Free spread betting market updates - A daily look at the spread betting markets as they close with views and opinion from one of the leading Spread Trading Companies...read article: UK Market Spread Trading.
Index of UK financial market trading articles - the regular closing market comments from IG Index...see Index.
Q) Average Trading Results?
A) Get free spread betting tips, offers, price updates, important news and more! All Free - Click here!
Risk Warning: Spread betting carries a high level of risk to your capital and 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.
* Tax law is subject to change or may differ if you pay tax in a jurisdiction other than the UK.
