World Market Trading - Spread Trading
Clean Financial - The Financial Spread Betting Website

World Market Trading

World Market Trading - Spread Trading


Trading Features / Strategies from Simon Denham of Capital Spreads.

Overnight the Nikkei has advanced some 500 points after Japanese growth (far from edging towards recession as was feared) came in at double economists estimates at 3.7% annualised in the forth quarter. With analysts expecting growth to be around 1.7% the question must be asked as to how, with such a massive source of data, the statisticians with all their wonderful models to play with can have managed to get it so wrong.

An entire economy is like a massive super-tanker whose momentum takes an enormous amount of time and space to turn in another direction. Alterations of this magnitude should have shown up in shipping volumes, credit facility increases or just general boardroom chitchat.

The increase has come from the expansion of the Asian and Russian market place as Japanese exporters look for other regions to pick up the baton from the tiring North American and European consumer. Unfortunately whilst Europe and the UK still appear to be very reliant on US growth the rest of the world is moving ever further away from the American mall.


Financial Spreads » "With FinancialSpreads.com you get all the normal
advantages of Spread Betting plus..." » read Financial Spreads review.

The Chinese have been cozying up to the African nations in attempts to secure their resource supply lines and this might be just what these strife torn parts of the world require. Whilst the US and Europe sit around wringing their hands whenever one of the more extreme African leaders goes off at the deep end, Beijing is very unlikely to tolerate some rampaging warlord ripping up mining contracts or ruining infrastructure. Elsewhere, Australia’s exporters are now more dependent on the emerging markets than on Europe or the US and their unemployment rate fell to its lowest level since 1974 as demand from its mining sector continued to power the economy. Indian growth is also showing few signs of slackening off and ever increasing news of investment money flowing from the Sub Continent into Europe rather than the other way round is likely to prove just the beginning.

Yes, the UK, the States and much of Europe are struggling against the low cost economies of the Far East but this is hardly a new phenomena. The real fear is whether we have reached a pivotal point where the accumulated wealth of the developed economies is no longer enough to keep growth on track. Will demand (not supply) from the emerging markets become the deciding factor in the years to come?

In Germany we are seeing the possibility of a REAL banking crisis not the ersatz one of the Northern Rock. Over there they actually have banks on the cusp of going bust because of losses on investments (not because of the technical drying up of the Money Markets). This is a far more serious matter as it calls into question the financial stability of all banks that have lent money to the ailing units. The whole banking system is a web of interconnecting loans. Bank A lends to bank B who might have another unit lending back to Bank A and Bank C etc etc. If too many of the supports are put under pressure the fear of a domino effect of bank failures begins to rise. Ah well just another thing to worry about!!



The above comments do not constitute investment advice and neither Capital Spreads nor Clean Financial accept any responsibility for any use that may be made of them.


Capital Spreads » "With Capital Spreads you get all the normal
advantages of Spread Betting plus..." » read Capital 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 Capital 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.

'World Market Trading' edited by SD, updated 14-Feb-08



Also see:

Trading Features / Strategies Index – an index of all the Trading Features.



Free Financial Email Updates
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.

Home
Capital Spreads
ETX Capital
Financial Spreads
GFT
IG Index
InterTrader
Spreadex
Spread Betting Tips
1) Daily Trading Tips
2) Financial Tips
3) Financial Tipping
4) Strategies
Spread Betting News
Daily Trading Update
Daily Analysis
Daily Trading Review
Daily Closing Update
Daily Market Data
Live Charts
Live Prices
Trading Videos
Stock Market Spreads
Stock Market Reports
Stock Market Analysis
Stock Market Charts
Stock Market Prices
FTSE 100 Spreads
Dow Jones Spreads
DAX 30 Spreads
Forex Spreads
Forex Reports
Forex Analysis
Forex Charts
Forex Prices
EUR/USD Spreads
GBP/USD Spreads
Commodities Spreads
Commodities Reports
Commodities Analysis
Commodities Charts
Commodities Prices
Gold Spreads
Crude Oil Spreads
Shares Spreads
Share Tips
Share Trading Reports
Share Charts
UK Shares
US Shares
Spread Betting
Bonds Spreads
Interest Rate Spreads
Spread Trading Blog
Financial Fixed Odds
CFD Trading
Trading Features
Trading Forum
Technical Trading
Free Newsletter
Why Spread Bet?
What's Spread Betting?
Glossary - part 1
Glossary - part 2