Posted on | May 29, 2012 | No Comments
UK Spread Betting Markets
Spanish markets continue to trade lower as fears that Spain will need a bailout continue to grow.
These concerns are continuing to act as a drag on core European markets. However, the core markets did manage to shrug off a denial by a Chinese news agency that reports that China was considering a large emergency stimulus plan, which had given stocks an early bid bias.
Mining stocks are nevertheless the main gainers today on expectations that China will probably ease policy at some stage in the coming weeks.
The biggest gainer today has been yesterday’s largest faller, namely British Airways owner International Consolidated Airlines.
The firm bounced back after being sold off yesterday on speculation that bailed Spanish bank Bankia would have to sell its 12% shareholding to raise capital.
BG Group is having a good day after announcing the sale of its majority stake in Brazilian gas distributor Comgas for $1.7bn.
Though general sentiment in Europe remains a weighty factor when it comes to the general direction for stocks, company earnings also play a part, as shown by the falls in builders merchant Wolseley’s share price today. This came after the company reported a slide in Q3 revenue, and dropped to the bottom of the index.
US Spread Betting Markets
US financial spread betting markets returned from their long weekend opening higher in what is likely to be a key week for the US economy, with the release of Q1 GDP revisions and jobs data for May, due out at the end of this week.
Facebook’s woes continue as the stock continues to trade lower despite the overall benchmark indices having a rather more positive tone.
US consumer confidence took some of the edge off some of the gains after the May number came in at 4 month lows of 64.9, below expectations of 69.2. The Dallas Fed index for manufacturing activity for May also disappointed coming in at -5.1.
Despite the disappointing data, markets have held onto their gains as speculation grows that the poor data may prompt the Fed to extend “operation twist” at next month’s meeting.
FX Spread Betting Markets
Currency markets have found themselves pretty much side-lined today, continuing to trade within recent ranges.
The single currency continues to upside capped by concerns about rising Spanish yields while there does appear to be some decent support building up around the 1.2500 level. However, the bias remains for a lower euro given the policy deadlock at the heart of Europe.
We’re continuing to see record low yields on 10 year German bunds as investors continue to worry about what the next steps in the euro crisis will be.
The pound has had an indifferent day against most of the major currencies trading in a holding pattern despite some positive CBI retail sales data for May showed a rise into positive territory to 21 from -6 in April.
Commodities Spread Betting Markets
US oil prices have continued to pull away from the $90 level seen earlier this week as, despite poor economic data today, speculation that this week’s GDP revision will continue to point to at the very least an on-going but slow recovery.
Gold spread trading markets have continued to remain well underpinned helped in some parts by the disappointing US data this afternoon which has once again raised expectations that the Fed may look at further easing at its next meeting in June.
Despite the denials of a Chinese stimulus plan copper prices have jumped sharply to their highest levels in a week, on expectations of some sorts of policy adjustment in the coming weeks.
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Spread Betting, FX and CFD comments by Michael Hewson, Market Analyst, CMC Markets.
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