Retreat in Commodities Pulls FTSE Back: Financial Spread Betting News

Calendar February 18, 2010 | Posted by Robert

A retreat in commodity prices pushed prices lower in Asia overnight and the US futures with them. European equity markets have followed on with the FTSE currently trading down 13 points at 5262.

The markets in general are lacking focus, with attention flicking daily between sovereign debt concerns on the negative side and improved corporate and economic news on the other.

The markets have reacted positively to the diminished prospect of a complete default in Greece. However, the volatility in the European equity markets and the Euro itself demonstrate how little confidence there is in this being an end to debt problems across the EU.

The Philly Fed figure in the US today is expected to continue recent upbeat economic data on that side of the Atlantic.

The Dollar is firmer on the back of this data and on the minutes from the FOMC last night, which remained broadly positive and addressed an exit strategy from quantative easing.

The prospect of asset sales in the near future was mentioned in a bid to reduce the deficit sooner than expected.

The fluctuations in the Euro and Dollar remain one of the more interesting plays in the market at present.

On the individual equity front, VT Group have rejected an improved offer from Babcock of £1.29bn. The response from VT was that the offer was merely a “small improvement” and that the offer continued to significantly undervalue VT and its prospects”

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The above comments do not constitute investment advice and neither Spreadex nor SpreadBets.org.uk accept any responsibility for any use that may be made of them.

By Richard Griffiths, Senior Trader, Spreadex.

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