European Spread Betting Markets Tumble

Posted on | June 29, 2010 |

Markets across Europe tumbled as weak consumer confidence numbers from the US compounded continuing fears of European debt worries and the state of the global recovery.

FTSE 100 sold down to 4899, nearly a 3% retracement before making something of a recovery, but still closing down over 2.5% Germany’s Dax traded lower by 3% as negative sentiment intensified as client’s dumped stock and shied away from riskier assets.

Clients had been edgy this morning after the Dax opened surprisingly weak, setting the tone for a nervous morning session. Clients reduced positions amid light volumes causing European markets to quietly drift 1.5% lower. Heavyweight sectors Banks and Miners dragged the market lower, as the familiar round of global growth concerns returned to the fore, and investors retreated to the safety of the dollar and gilts.

Just as the market was hoping for something to spark a bounce from the day’s lows, clients were hit with a sucker punch as a worse than expected consumer confidence number hit the wires. Clients seem particularly concerned at the negative trend being set from US macro data after last week’s disappointing homes and employment data.

As investors struggle to find positives in the market, concern remains over how much lower we could go. With the FTSE now trading just above 4900 many see the market teetering just above significant technical levels of support which if breached could see much more aggressive retracements round the corner.

Please remember that Spread Betting and CFD Trading are leveraged products that carry a high level of risk to your capital and can result in losses that could quickly exceed your initial outlay. These products may not be suitable for everyone, so please make sure you fully understand the risks involved.

Spread Betting and CFD comments by Nick Serff, Market Analyst, City Index.

The above should not be construed in any circumstances as a recommendation or offer to sell or recommendation or solicitation of any offer to buy any security or other financial instrument.

Neither City Index not Spread-Betting.org warrant or represent that the material is accurate, complete, not misleading, or fit for the purpose which it is intended and it should not be relied upon as such.

Comments