|
|
Stock Market Spread Betting UK |
|
|
A review of Stock Market Spread Betting UK.
Also see today's Stock Market Spread Betting UK News.
Spread Betting on Indices - 16 September 2011
Despite the rogue trading revelation, yesterday equity markets held up well and for UK stocks there was more good news for retailers following Next’s bumper figures on Wednesday.
This time it was the turn of Kingfisher, the owner of B&Q, to report stellar numbers and give retailers another lift.
But yesterday’s gains were led by banks who rallied on the back of the news that central banks will step in to quell any short fall in Dollar lending.
As we’ve regularly pointed out, banking stocks have suffered severe losses recently but in the past few days have showed small signs of a possible end to their declines. It’s still far too early to say the selling is over and today is a critical day for not just the banks, but the equity markets as a whole.
It’s all about today’s meeting of the EU finance ministers and the US Treasury Secretary who has come along for the ride. The financial spread betting markets have rallied so far this week into today, fully expecting the meeting to deliver something big.
When we say “big” we mean big and there are only a few options available to them. One is, for the politicians, the most undesirable and that’s an orderly default by Greece and an exit from the Eurozone. Unfortunately that will cost billions in losses for the banks and others that have lent to them and could set off a domino.
Others include a complete recapitalisation of the whole European banking sector to the tune of $1 trillion which would make the rogue traders looks rather insignificant.
Plus there is also the option of a Euro bond, another desperately unpopular solution, which in affect will mean the richer nations bank rolling and guaranteeing the debt of the poorer ones.
The FTSE is optimistic though ahead of any decision reached by the EU finance ministers, up some 30 points, however lower than where we were calling it earlier with our quote hitting the 5400 level once again.
Unsurprisingly many of our spread betting account holders came in last night and sold into the strength. Overall they are short of the market, which has recently proved the right move to take considering that the FTSE has retraced from around 5400 three times now in the past few weeks. Could this be the fourth rejection of that level?
Spread Betting on Indices - 15 September 2011
Investors seem to be pinning their hopes on the fact that there might be some sort of lasting agreement that will once and for all deal with the sovereign debt crisis.
It could well be wishful thinking as we've seen a lot of hot air coming out of the mouths of politicians in the last couple of years, yet the situation worsens by the day.
Meeting after meeting of finance ministers, G somethings or other leaders just ends up in a load of back slapping and comments about how it'll turn out all right in the end.
Well unless something is done soon European leaders will get a shock and be the ones that were steering the ship when one of the EU's member states defaulted.
The markets are now pricing in a 90% chance of a Greek default, so basically they will default unless...
A lot is riding on tomorrow's meeting in Poland which is also being attended by the US Treasury Secretary Timothy Geithner.
Calls from the US and China are becoming more frequent and louder for Europe to sort its problems out, as they, and the rest of the global economy for that matter, have so much riding on the matter.
Until then the indices spread betting markets may continue to just gain a little ground as the hopes build, but if the desired outcome isn't achieved, there could be another almighty move to the downside.
As mentioned already this week a lot of banking stocks formed rather bullish candlesticks which have so far seen their share prices halt their falls.
The fact that two French banks were downgraded yesterday but their share prices actually rallied indicates how much of the bad news has now been priced in. It is still far too early days to call this a floor in the sell off however.
This morning the FTSE is continuing in a similar vein to the way it left off yesterday following a decent bout of buying in US markets last night.
At the time of writing, the FTSE is at 5285 so bulls must be thinking the near term resistance around 5325 is a possible target. In fact our spread betting quote actually hit this level towards the end of the Dow's session last night.
Economic data today comes in the form of UK retail sales this morning. This is expected to fall following a tough August for shoppers after much of the discounting of the earlier summer months came to an end.
Then later on from the US there's the Phili Fed which caused some fireworks last time it was released after plummeting last month. This time a bounce is expected from the -31 shocker to around -16.
Spread Betting on Indices - 14 September 2011
At the time of writing the FTSE is doing very well to improve on what started as a poor start to the day’s trading.
We had called the index lower by some 40 to 50 points, which is where we started out, but it hasn’t taken long to reverse those losses. We’re now back above the 5200 level in positive territory and looking in relatively good shape.
Spread betting investors are holding onto a glimmer of hope that the call between “Merkozy” and Greece’s Prime Minister George Papandreou will, as a minimum, confirm their next tranche of bailout funds. Many are also hoping it will be the first step towards the desired action needed to halt the crisis ahead of Friday’s key G7 meeting in Poland.
Today’s major economic data releases come in the form of US retail sales which are expected to rise a little by 0.2%.
The last Beige Book was relatively encouraging from a consumer spending point of view through August, despite what was going on in the financial markets. This might be a ray of light in the darkness.
Spread Betting on Indices - 13 September 2011
China comes to the rescue of Italy as they show their support for Europe’s third biggest economy.
You have to wonder how long it’ll be before other European states go cap in hand to the Chinese.
If fact China has already been purchasing large amounts of Euros and European sovereign debt so what we are seeing isn’t anything particularly new or ground breaking. What it does do is remind us of our reliance now on the world’s fastest growing economy.
As a result the response from Asian markets was rather muted and European indices have opened quite a bit lower than our original calls. The FTSE is in the mid 5100 region when we were expecting an open of plus 5200.
Italian bonds have hardly battered an eyelid following the news, with yields pretty much where they left off from yesterday. As a result, everything about today’s little move higher for the stock market indices has a bit of a short squeeze feel about it.
Encouragingly though the FTSE has bounced off the 5050 area once again and this remains the crucial support level for the index.
European indices, in particular the French CAC which got seriously bashed around yesterday, are making tentative gains but as things stand this morning it’s hardly a move that screams “the sell off is over”.
Having said that, our spread betting account holders seem to feel that more gains can be made and the FTSE could get back above 5200 to test 5300 and possibly beyond.
They bought into the index yesterday and those longs on the whole remain in place. If past behaviour is anything to go by though I can foresee that if we do test 5400 again those same clients will close their longs and go short.
The worrying thing for investors in the FTSE is that whilst its European counterparts have broken to new lows for the year, the FTSE has not. It may turn out to be a matter of time before the London market gives up its support and tests the 4800 area again.
Investors seem to be on a knife edge with the battle between bulls and bears finely balanced and at some point one group will gain the upper hand.
Spread Betting on Indices - 12 September 2011
Traders have started the week with a sea of red as European indices spread betting markets are falling, particularly the French stock market which is being absolutely battered.
The French CAC 40 is now below the lows of August and so the index is only 15% or so from the lows of March 2009 following the last banking crisis. As a comparison the FTSE 100 is still over 30% off those lows.
Having said that, the banking sector sell off this morning has brought the UK index down to 5100 at the time of writing, just above its recent lows.
Key near term support is at 5050, which looks dangerously like being tested, meanwhile to the upside resistance is rather further away, expected at 5200/85 and 5325.
Spread Betting on Indices - 9 September 2011
The indices spread betting markets have taken things in their stride throughout this week and have put in some decent gains.
We were slightly expecting more volatility in last night's action, which was dominated by Obama's speech to Congress, however the reaction from the Dow was somewhat muted.
But as usual it was Bernanke who market participants were more focused on and his speech can be summed up in just a few words: not good enough.
Investors were hoping for more hints that stimulus is coming but they didn't get it so that's feeding through to European stock markets this morning.
The FTSE spread betting market is at just about break even this morning after having been called to open below the 5300 mark, so there are more buyers out there than expected.
At the time of writing the FTSE is at 5340 with the major resistance level at 5400 remaining the big hurdle for the bulls.
As long as the near term support of 5300-5280 can hold then we might even see a test of near term resistance at 5375 before a test of the all important 5400/25 area.
Spread Betting on Indices - 8 September 2011
Optimism seems to be sweeping the markets as the Dow Jones put in a very impressive rally overnight.
The Fed’s Beige Book didn’t exactly shine, but the buying spree was fuelled by the prospect of a growth package from President Obama when he addresses Congress later today. We are also looking for Bernanke to give his views on the US’s economic outlook later today.
The punt that the bulls are having at the moment is that Bernanke will give further indication of a fresh bout of stimulus for the world’s biggest economy.
The FTSE had been called higher overnight, but the closer our quote got towards 5400 the more it looked like it was running out of steam. As a result, once again this area, although we didn’t touch it, is looking to be a bridge too far for the index.
The FTSE is now down on the day at the time of writing to 5300 so near term support isn’t seen until about 5180 and 5080. This indicates that it could be just as easy for us to head back down to this area as it has been for us to bounce in the last couple of days. In fact this is just how the market has been trading in recent weeks.
Spread Betting on Indices - 7 September 2011
Many investors may be rather bamboozled by the move yesterday and this morning in the face of such chaos in Europe.
Despite all the doom and gloom the FTSE is looking in relatively good shape. The indices spread betting markets have been trading in ranges that suggest that they might be finding a platform of support. For the FTSE, yesterday’s bounce off the 5050 area coincided with a similar bounce from the same area last week.
In the face of all that’s being thrown at the market, yesterday’s move was encouraging, but largely assisted by the good bounce from its lows by the Dow.
The 5400 area remains the crucial resistance area that the FTSE needs to get back above before we can start to be more confident that the recent sell off is over. Whilst this is only 150 points away, it seems like a mighty task to many.
This morning we’re at 5250 at the time of writing so this upside target and the major support level at 4800 seem to be restricting the index to another trading range. However, spread betting account holders should be cautious as the range is quite a wide one so volatility isn’t expected to get any lower.
Economic data releases today come in the form of industrial production from the UK and Germany and then we end the day with the US Fed’s Beige Book.
Spread Betting on Indices - 6 September 2011
The FTSE has opened much higher than we expected this morning.
I have to admit myself, however, that a call of 60 points lower in the early hours of the morning, just on the back of the moves in Asian markets, did seem a little far fetched.
The index has shrugged off the negative mood in Asia and started a little perkier this morning up some 20 points. This little bounce could conceivably carry on when US investors return to their desks from their extended weekend to see that Europe has driven their Dow Jones futures down over 200 points and the S&P over 25 points.
Sometimes US shares traders get back to their desks in such a situation and go “hey, why the market so much lower” and give us a bit of an uplift.
However, the overall picture remains bleak with yesterday’s trading session riddled with bad news from the services sector and a resurgence in Eurozone debt crisis woes.
When you’ve got the head of one of Europe’s biggest banks saying that the situation now is more worrying than the 2008 crisis, then you’ve got to be concerned. Back then banks were bailed out by governments, but now it’s the governments that are in trouble and there isn’t anyone who can bail them out.
As mentioned the services data across Europe was poor in particular for the UK, which doesn’t bode well for this quarter’s GDP number.
The PMI numbers are often intrinsically linked to business and consumer confidence which as we all know has been tumbling recently. If a business or consumer is worried about the months ahead then they will not look to invest, expand or spend and so this is why we’ve seen service activity dip along with confidence.
This afternoon the US releases its services data whish is due to come in just above the crucial 50 level at 51.3. However, because last week’s consumer confidence came in so poorly, this ISM non-manufacturing number could possibly disappoint to the downside and come in below 50.
Spread Betting on Indices - 5 September 2011
The announcement by the US of a $200bn lawsuit against the banking sector for the miss-selling of mortgage backed assets is hurting the banks this morning.
This has lead to a weak stock market so the FTSE has dipped below the 5200 level. At the moment it seems impossible to be bullish of stocks when the markets keep getting bombarded by bad news.
Spread betting and CFD trading carry a high level of risk and you can lose more than your initial deposit so you should ensure spread betting or CFD trading meet your investment objectives and if necessary seek independent advice.
Market Commentry from Financial Spreads.
|
Financial Spreads - tax free* trading on over 2,500 spread betting markets. With a Financial Spreads Account you can trade commission free, 24 hours a day on stock market indices, forex, shares commodities and...read review » Financial Spreads.
|
With financial spread betting you can lose more than your original stake or investment. Spread betting carries a high level of risk to your capital. Please familiarise yourself with the risks that are involved and before trading, ensure that financial spread betting matches your investment objectives. Seek independent advice where necessary.
Stock Market Spread Betting UK - edited by MJ, 16 September 2011.
For related pages and articles see:
Spread Betting on Indices - guide last updated: 21 May 2012
Spread Betting on Indices - the spread betting guide to trading Indices markets, including where to spread bet on Indices, how to spread bet on Indices and the best way to ...more: Spread Betting on Indices.
Index Spread Betting - guide last updated: 10 May 2012
Index Spread Betting: a guide to index spread betting reviewing the stock markets, dividends, index spread betting comparison, stock market trading costs, where to trade indices, index spread betting technical analysis, market commentary and ...more: Index Spread Betting.
Index Futures Spread Trading - guide last updated: 27 April 2012
Index Futures Spread Trading: a close look at Index Futures Spread Trading with an Index Futures spread trading price comparison, how to spread trade on Index Futures and Index Futures commentary. A downgrade to Spain's credit rating by S&P has reminded the bulls of the headwinds that ...more: Index Futures Spread Trading.
Financial Spread Betting on Index Futures - guide last updated: 13 April 2012
Financial Spread Betting on Index Futures: an in-depth look at Financial Spread Betting on Index Futures with an Index Futures trading price comparison, how to trade Index Futures and Index Futures commentary. Markets were awash with rumours that the Chinese GDP data was going to ...more: Financial Spread Betting on Index Futures.
Online Index Futures Spread Betting - guide last updated: 30 March 2012
Online Index Futures Spread Betting: a close look at Online Index Futures Spread Betting with an Index Futures price comparison, how to trade Index Futures and Index Futures market commentary. The last day of Q1 is set to start with a bang as window dressing pushes the financial spread betting market higher at ...more: Online Index Futures Spread Betting.
Spread Betting Index Futures Trading - guide last updated: 16 March 2012
Spread Betting Index Futures Trading: a comprehensive look at Spread Betting Index Futures Trading with an Index Futures price comparison, how to trade Index Futures and Index Futures market commentary. US markets continue their climb with the S+P 500 hitting its highest level in almost four years. Yet ...more: Spread Betting Index Futures Trading.
UK Index Futures Spread Betting - guide last updated: 02 March 2012
UK Index Futures Spread Betting: a comprehensive look at UK Index Futures Spread Betting with an Index Futures spread trading price comparison, how to trade Index Futures and Index Futures market commentary. Greece continues to dominate the financial spread betting markets as an agreement on the PSI is still yet to ...more: UK Index Futures Spread Betting.
Index Futures Spread Betting UK - guide last updated: 17 February 2012
Index Futures Spread Betting UK: a close look at Index Futures Spread Betting UK with an Index Futures trading price comparison, how to trade Index Futures and Index Futures commentary where US markets continue to ignore what's going on in Europe as they rally higher, putting the Dow Jones spread betting market ...more: Index Futures Spread Betting UK.
Index Futures Spread Betting - guide last updated: 03 February 2012
Index Futures Spread Betting: an in-depth look at Index Futures Spread Betting with an Index Futures trading price comparison, how to trade Index Futures and Index Futures commentary where our financial spread betting clients seem to think it might soon be time for a move to the downside as there's ...more: Index Futures Spread Betting.
Spread Betting on Index Futures - guide last updated: 20 January 2012
Spread Betting on Index Futures: a close look at Spread Betting on Index Futures with an Index Futures spread betting price comparison, how to trade Index Futures and Index Futures commentary where we saw a few rays of sunshine for the Eurozone as Spain and Portugal managed to not only find buyers for their debt but also ...more: Spread Betting on Index Futures.
Stock Market Spread Trading - guide last updated: 06 January 2012
Stock Market Spread Trading: an in-depth review of Stock Market Spread Trading with a Stock Market spread trading price comparison, how to trade Stock Market Indices and Stock Market commentary where the FTSE spread trading market remains tentatively above its 200 day moving average, having broken back above there at the beginning of ...more: Stock Market Spread Trading.
Financial Spread Betting on Stock Market Indices - guide last updated: 23 December 2011
Financial Spread Betting on Stock Market Indices: a comprehensive look at Financial Spread Betting on Stock Market Indices with a Stock Market trading price comparison, how to trade Stock Market Indices and Stock Market commentary where we saw a continuation of the volatility that has very much been the theme of the second half of this year. After the bumper round of ECB ...more: Financial Spread Betting on Stock Market Indices.
Online Stock Market Spread Betting - guide last updated: 09 December 2011
Online Stock Market Spread Betting: a comprehensive look at Online Stock Market Spread Betting with a Stock Market trading price comparison, how to trade Stock Market Indices and Stock Market commentary where, after closing at 5483.7, its lowest level in more than a week, the UK 100 index looks set to mimic losses in the Wall Street and ...more: Online Stock Market Spread Betting.
Index Spread Trading - guide last updated: 25 November 2011
Index Spread Trading: an in-depth look at Index Spread Trading with an Index spread trading price comparison, how to trade Indices and Indices commentary where the FTSE is hovering in the red just above 5100 and looking poised to test new recent lows as the US index markets are closed for ...more: Index Spread Trading.
Financial Spread Betting on Indices - guide last updated: 11 November 2011
Financial Spread Betting on Indices: a comprehensive look at Financial Spread Betting on Indices with an Indices spread betting price comparison, how to trade Indices and Indices commentary where the up down, up down see-saw trading continues for the indices markets. The Dow Jones managed to put in a half decent gain ...more: Financial Spread Betting on Indices.
Online Index Spread Betting - guide last updated: 28 October 2011
Online Index Spread Betting: a close look at Online Index Spread Betting with an Index trading price comparison, how to trade Index markets and Index commentary where there's been something of a buying frenzy on the indices spread betting markets. Optimism ahead of the EU summit and corporate earnings ...more: Online Index Spread Betting.
Spread Betting Stock Market Trading - guide last updated: 14 October 2011
Spread Betting Stock Market Trading: an in-depth look at Spread Betting Stock Market Trading with a Stock Market trading price comparison, how to trade Stock Market indices and Stock Market commentary where the FTSE is flat after the recent strength that followed the Merkozy announcement that they had agreed a Eurozone ...more: Spread Betting Stock Market Trading.
UK Stock Market Spread Betting - guide last updated: 30 September 2011
UK Stock Market Spread Betting: a comprehensive look at UK Stock Market Spread Betting with a Stock Market spread betting price comparison, how to trade Stock Markets and Stock Market commentary where the UK 100 stock market index is down around 30 points this morning to 5170, following on from yesterday's ...more: UK Stock Market Spread Betting.
Stock Market Spread Betting UK - guide last updated: 16 September 2011
Stock Market Spread Betting UK: an in-depth look at the Stock Market with a Stock Market trading price comparison, how to trade Stock Market Indices and Stock Market commentary where it's all about today's meeting of the EU finance ministers and the US Treasury Secretary. The financial spread betting markets have rallied ...more: Stock Market Spread Betting UK.
Stock Market Spread Betting - guide last updated: 02 September 2011
Stock Market Spread Betting: an in-depth look at Stock Markets with a Stock Market trading price comparison, how to trade Stock Markets and Stock Market commentary where the stock market indices seem to have steadied themselves so far this week but that doesn't mean the volatility is ...more: Stock Market Spread Betting.
Spread Betting on Stock Market Indices - guide last updated: 19 August 2011
Spread Betting on Stock Market Indices: an in-depth look at Spread Betting on Stock Market Indices with a Stock Market Indices trading price comparison, how to trade Stock Market Indices and Stock Market Indices commentary where markets are opening lower with the FTSE 100 currently trading at 5230 having tried to bounce off the support at 5260/65, which proved ...more: Spread Betting on Stock Market Indices.
Spread Betting Index Trading - guide last updated: 05 August 2011
Spread Betting Index Trading: an in-depth review of spread betting index trading with an index trading price comparison, how to trade indices and index spread betting market analysis. The indices spread betting markets were hardly helped by the ECB's announcement that they were to start purchasing government bonds ...more: Spread Betting Index Trading.
Index Spread Betting UK - guide last updated: 14 March 2008
Index Spread Betting UK - a review of index spread betting for UK investors, with an indices comparison of UK spread betting companies, how to spread bet on indices with UK brokers, an introduction to index spread betting and ...more: Index Spread Betting UK.
UK Index Spread Betting - guide last updated: 29 February 2008
UK Index Spread Betting - a review of UK index spread betting, where to spread bet on indices, how to spread bet on indices plus an introduction to index spread betting and ...more: UK Index Spread Betting.
|
|
|
|
|
With spread betting you can lose more than your original stake or investment. Spread betting carries a high level of risk to your capital so please familiarise yourself with the risks that are involved and, before trading, ensure that spread betting matches your investment objectives. Seek independent advice where necessary.
|
* Based on current UK tax law. Tax law may change and can differ depending on your personal circumstances.
|
|
|
|
|
