UK Shares Spread Betting Guide: Aquarius Platinum

Calendar May 7, 2012 | Posted by Robert

Where can I Spread Bet on Aquarius Platinum?

 

You can place spread bets on Aquarius Platinum shares with:

The spread betting companies mentioned above also offer tax free* spread betting on a range of other financial markets such as stock market indices, commodities and forex.

For more information about:

 

Aquarius Platinum Spread Trading Example

 

On Friday, the price of the Aquarius Platinum Rolling Daily market was 125.2p – 125.8p with firms like Financial Spreads.

As with the majority of leading equities listed on the exchanges like the LSE and the NYSE, an investor can place a spread bet on the Aquarius Platinum shares to rise or fall in value. With the Aquarius Platinum Rolling Daily market, you can speculate on:

a) Aquarius Platinum shares to move higher than 125.8p, or
b) Aquarius Platinum shares to move lower than 125.2p.

With the Aquarius Platinum market you trade in £X per penny, where a penny is 1p of Aquarius Platinum share price movement. As a brief example, if your stake was £15 per penny and the Aquarius Platinum stock moved 5p then your profits (or losses) would change by £75.

 

Aquarius Platinum Shares Spread Betting Example

 

Considering an example, let’s assume you see the live price on an online spread betting website and it shows the current spread of 125.2p – 125.8p. Having done suitable market analysis, you could come to think that the Aquarius Platinum share price will increase and move above 125.8p. Therefore:

  1. You think the Aquarius Platinum shares should go up
  2. You decide you want to ‘buy’ the market at 125.8p and you risk £20 per penny
  3. The share price increases and so the market changes to 131.5p – 132.1p
  4. With the new price you may choose to take your profit and close your bet. To do this you would sell at 131.5p
  5. You bought the market at 125.8p
  6. Profit = (Final Level – Initial Level) x stake
  7. Profit = (131.5p – 125.8p) x £20 per penny
  8. Profit = 5.7p x £20 per penny
  9. Profit = £114.00 profit

 

Investments don’t always go to plan. Had the spread betting market failed to move as forecast, and had the Aquarius Platinum shares decreased in price, with the market decreasing to 120.8p – 121.4p, then you could choose to settle your position and prevent any further losses. You would do this by selling at 120.8p.

  1. Price you bought the market at: 125.8p
  2. Loss = (Final Level – Initial Level) x stake
  3. Loss = (120.8p – 125.8p) x £20 per penny
  4. Loss = -5.0p x £20 per penny
  5. Loss = -£100.00 loss

 

Please note that when Rolling a bet over to the next day you might incur a charge or income for every day that the trade is maintained. For more information please read: Rolling Daily Spread Betting Charges.

(Financial spread betting prices correct as of 04-May-12)

 

Latest Financial Spread Betting Accounts and Offers

 

If you are considering spread trading as a part of your portfolio then for more details on:

 
Important Note: Spread betting is a leveraged investment product, it involves a high degree of risk to your funds and can result in you losing more than your initial stake. Ensure that it fits your investment requirements as it might not be suitable for all types of investor. Before you trade, make sure you are fully aware of the risks. Only speculate with funds that you can afford to lose. Where necessary seek independent financial advice.

* As per current UK and Irish tax law, this may change/differ depending on your own situation.

Category Categories: Financial Markets, Spread Betting News, Spread Betting on Shares | Tag Tags: | Comments No Comments »

UK Equities Trading Guide: Laird

Calendar May 6, 2012 | Posted by Robert

Where can I Spread Bet on Laird?

 

You can place spread bets on Laird shares with:

The spread betting companies mentioned above also offer tax free* spread betting on a range of other financial markets such as stock market indices, commodities and forex.

For more information about:

 

Laird Trading Example

 

On Friday, the price of the Laird Rolling Daily market was 195.7p – 196.7p with FinancialSpreads.com.

Like the majority of leading equities listed on the exchanges, you can spread bet on the Laird shares to go up or go down in value. With the Laird Rolling Daily market, investors can place a spread bet on:

a) Laird shares to rise above 196.7p, or
b) Laird shares to fall below 195.7p.

Note that with the Laird shares spread betting market you trade in £X per penny, where a penny is 1p of Laird share price movement. As an example, if you had a stake of £20 per penny and the Laird stock moves 5p then your profits (or losses) would change by £100.

 

Laird Shares Spread Trading Example

 

Considering an example, let’s assume you see the real time price on a spread betting website that gives the spread of 195.7p – 196.7p. So, after suitable market research, you might feel that the Laird shares will increase and go higher than 196.7p. This means:

  1. You think that the Laird share price should increase
  2. You decide you are going to ‘buy’ the market at 196.7p and you risk £10 per penny
  3. The market rises with the spread becoming 204.1p – 205.1p
  4. With this new spread you may choose to take your profit and close your bet. You would do this by selling at 204.1p
  5. You initially bought the market at 196.7p
  6. Profits (or losses) = (Closing Level – Initial Level) x stake
  7. Profits (or losses) = (204.1p – 196.7p) x £10 per penny
  8. Profits (or losses) = 7.4p x £10 per penny
  9. Profits (or losses) = £74.00 profit

 

Investing does not always go to plan. Had the market failed to move as forecast, and had the Laird stock decreased in value, with the market going down to 188.0p – 189.0p, then you could decide to settle your position and prevent any further losses. In order to do this you would sell at 188.0p.

  1. Initial price you bought the market at: 196.7p
  2. Profits (or losses) = (Closing Level – Initial Level) x stake
  3. Profits (or losses) = (188.0p – 196.7p) x £10 per penny
  4. Profits (or losses) = -8.7p x £10 per penny
  5. Profits (or losses) = -£87.00 loss

 

Note that when Rolling a bet over to the subsequent day you may incur a charge or income for every day that the trade is held overnight. For more information read: Rolling Daily Spread Betting Charges.

(Spread betting market correct as of 04-May-12)

 

Latest Financial Spread Betting Accounts and Offers

 

If you are considering spread trading as a part of your portfolio then for more details on:

 
Important Note: Spread betting is a leveraged investment product, it involves a high degree of risk to your funds and can result in you losing more than your initial stake. Ensure that it fits your investment requirements as it might not be suitable for all types of investor. Before you trade, make sure you are fully aware of the risks. Only speculate with funds that you can afford to lose. Where necessary seek independent financial advice.

* As per current UK and Irish tax law, this may change/differ depending on your own situation.

Category Categories: Financial Markets, Spread Betting News, Spread Betting on Shares | Tag Tags: | Comments No Comments »

UK Stocks Spread Betting Guide: Phoenix Group

Calendar May 5, 2012 | Posted by Robert

Where can I Spread Bet on Phoenix Group?

 

You can place spread bets on Phoenix Group shares with:

The spread betting companies mentioned above also offer tax free* spread betting on a range of other financial markets such as stock market indices, commodities and forex.

For more information about:

 

Phoenix Group Spread Betting Example

 

On Friday, the price of the Phoenix Group Rolling Daily market was 512.3p – 515.2p with FinancialSpreads.com.

Like most large cap shares listed on the leading exchanges, you can bet on the Phoenix Group shares to go up or go down in value. With the Phoenix Group Rolling Daily market, an investor can place a spread bet on:

a) Phoenix Group shares to go above 515.2p, or
b) Phoenix Group shares to go below 512.3p.

It should be noted that with the Phoenix Group market you trade in £X per penny, where a penny is 1p of Phoenix Group share movement. As a brief example, if your stake was £10 per penny and the Phoenix Group share price moved 5p then your P&L would alter by £50.

 

Phoenix Group Shares Trading Example

 

As a quick example, let’s assume you see the real time price on a spread trading website and it shows the current spread of 512.3p – 515.2p. So, after your market analysis, you could come to feel that the Phoenix Group shares is going to go higher than 515.2p. This means:

  1. You believe the Phoenix Group share price will go up
  2. You want to go long of the market at 515.2p and you risk £5 per penny
  3. The price of the shares increases with the market moving to 533.7p – 536.6p
  4. With the new spread you might choose to guarantee a profit and close your position. In order to do this you would sell at 533.7p
  5. You bought the spread at 515.2p
  6. P&L = (Settlement Price – Opening Price) x stake
  7. P&L = (533.7p – 515.2p) x £5 per penny
  8. P&L = 18.5p x £5 per penny
  9. P&L = £92.50 profit

 

Financial spread betting does not always go to plan. If the market failed to move as forecasted, and had the Phoenix Group shares decreased in value, with the spread decreasing to 494.1p – 497.0p, then you might decide to settle your bet and prevent any more losses by selling at 494.1p.

  1. You bought the market at 515.2p
  2. P&L = (Settlement Price – Opening Price) x stake
  3. P&L = (494.1p – 515.2p) x £5 per penny
  4. P&L = -21.1p x £5 per penny
  5. P&L = -£105.50 loss

 

Please note that when Rolling a bet over to the following day you may incur a charge or income for every day that the trade is held into the next trading day. For more information see: Rolling Daily Spread Betting Charges.

(Market quoted as of 04-May-12)

 

Latest Financial Spread Betting Accounts and Offers

 

If you are considering spread trading as a part of your portfolio then for more details on:

 
Important Note: Spread betting is a leveraged investment product, it involves a high degree of risk to your funds and can result in you losing more than your initial stake. Ensure that it fits your investment requirements as it might not be suitable for all types of investor. Before you trade, make sure you are fully aware of the risks. Only speculate with funds that you can afford to lose. Where necessary seek independent financial advice.

* As per current UK and Irish tax law, this may change/differ depending on your own situation.

Category Categories: Financial Markets, Spread Betting News, Spread Betting on Shares | Tag Tags: | Comments No Comments »

Falling Service PMIs set to Weaken European Spread Betting Indices

Calendar May 4, 2012 | Posted by Robert

Yesterday’s decision by ECB President Mario Draghi that there would be no further help in the near term for the European financial system was a blow to the optimists who thought the ECB would hint at further help if the economic outlook continued to darken.

It would appear that Mr Draghi intends to keep the pressure firmly on European governments to pursue the reform agenda in exchange for any future help.

Spread betting indices could get evidence of that as soon as today with final service sector PMI data for April from Italy, France, Germany and the Eurozone as a whole.

After this week’s awful manufacturing numbers expectations are low with Germany expected to be the only bright spot at 52.6.

Italy is expected to drop to 43.7, France 46.4, and the Eurozone 47.9, all solidly in contraction territory. If these services numbers go the same way as the manufacturing numbers seen earlier this week then concerns about a prolonged European recession will increase.

Eurozone retail sales figures for March aren’t expected to be any better with a year on year decline of 1.1 percent expected.

Irrespective of how today’s European economic data turns out, this weekend’s events in France and Greece are more likely to dictate how the next stage of Europe’s crisis plays out as these countries go to the polls to elect new governments.

While in Italy, Prime Minister Mario Monti is likely to find that his honeymoon is over when voters go to the polls in regional elections.

The headline event of the day though is the US employment report for April, especially after the disappointment of March’s big miss of 120k. The economic data since those figures has been somewhat mixed, pretty much as it has been all week.

The ADP numbers on Wednesday pointed to a slowdown in private sector job growth, coming in as they did at 119k, and the worry is in the wake of yesterday’s disappointing April services numbers that April’s jobs numbers could miss as well.

Expectations are for a rise from the March numbers to 165k in April with the unemployment rate staying at 8.2 percent.

Given that the monthly average for jobs growth had, until the March numbers, been 200k+ there is a concern that a sharp drop in hiring could signal a false dawn for the recent US recovery, and prompt more strident calls for further stimulus from the Fed.

Even if that were to happen any further stimulus won’t happen before June as that is the earliest date for the next Fed meeting.

EURUSD

 
Patience appears to be a virtue here. We remain in the range with trend line resistance now at 1.3270 from the March highs.

A break through 1.3300 targets the 200 day MA at 1.3460.

With the lower line support on the triangle now at 1.3055, we need a break-out soon or the impulsive nature of the pattern will reduce.

The break of the triangle continues to remain the primary pattern and could well signal a 500 point move if it breaks out.

To open up the lows this year at 1.2630 we need to see a concerted break below 1.2975.

GBPUSD

 
Another negative day for the pound but it continues to hold up above 1.6160.

The positive momentum remains intact but does appear to be waning given the proximity of the trend line resistance at 1.6320 from the 2011 highs at 1.6750.

This suggests we could see a downward test towards 1.6050 and the highs at the beginning of April.

Only a move below 1.6050 retargets the long term trend line support at 1.5945 from the January lows at 1.5235 which continues to act as support on the downside.

EURGBP

 
Doji yesterday suggested indecision but we did get a lower low at 0.8105, bringing us closer to the 2010 lows at 0.8065.

The long upper shadows on the daily candles do suggest downside pressure remains the primary driver.

The momentum as such remains for a move towards the 2010 lows at 0.8065.

A break here would be very negative for the euro, opening up levels last seen in October 2008, when it touched 0.7700.

Only above the resistance at 0.8220 would retarget the larger resistance at 0.8280 as well as trend line resistance at 0.8300 from the February highs at 0.8505.

USDJPY

 
The dollar/yen does appear to be carving out a base around 79.70, however, the failure to get back above 80.45 is a concern and this keeps the risk skewed to the downside.

A failure to get above the weekly cloud resistance keeps the current momentum skewed towards the downside.

A break below 79.70 would then target 79.20 initially on the way to 78.35 and the 200 day MA.

The 80.42 cloud line should now act as a resistance level and for the dollar to stabilise we would need to see a close back above this key level.

Equity market calls

 
FTSE100 is expected to open 22 points lower at 5,745.

DAX is expected to open 30 points lower at 6,664.

CAC40 is expected to open 17 points lower at 3,206.

FTSEMib is expected to open 70 points lower at 14,048.

Spread betting carries a high level of risk to your capital and it is possible to lose more than your initial investment. Spread betting may not be suitable for all investors. Ensure you understand the risks involved and seek independent advice if and where necessary.

Forex trading news by Michael Hewson, Analyst, CMC Markets.

CMC Markets is authorised and regulated in the UK by the Financial Services Authority, register no. 173730.

Any CMC Markets research and charting tools are indicative, they are provided for information purposes, they must not be relied upon as investment advice. CMC Markets provide an execution-only service.

The above content should not be construed as a recommendation or offer to buy or offer to sell or solicitation of any offer to buy any security or other financial instrument by CMC Markets. The content is not a recommendation. You should seek independent advice as to 1) your suitability to speculate in any related markets 2) your ability to assume the associated risks 3) the tax, legal and accounting consequences of any transaction.

Category Categories: Financial Markets, Spread Betting News, Spread Betting on Currencies, Spread Betting on Forex, Spread Betting on Indices | Tag Tags: | Comments No Comments »

FTSE 100 Spreads to Open Higher amid Strong Construction PMI

Calendar May 3, 2012 | Posted by Robert

Spain will be the focal point of the markets today given that it will not only be hosting the monthly ECB council rate meeting in Barcelona, but will also be holding its first bond auction since being downgraded by S&P.

This week’s economic data has painted a worrying picture of an economy buckling under the strain of austerity, rising unemployment, as well as a lot of distressed lending, as the country dropped back into a double dip recession.

Today’s medium term Spanish bond auctions will be a key test of financial spread betting investor appetite outside the Spanish banking sector for demand for Spanish debt, with 10 year yields once again edging back towards the 6 percent level.

France will also be looking to sell bonds today with the likelihood that this will be the last debt sale under President Sarkozy’s watch, before the weekend elections.

Comments made last week by Mario Draghi, the ECB chief, about some form of “growth compact” has prompted speculation, that the ECB might give some clues about plans for another LTRO or some other form of help for a very sickly European economy.

It is more likely that Draghi will revise downwards the ECB’s growth forecasts, as well as give more details about any trickle-down effect from the recent LTRO’s.

The UK continues to set itself apart from European PMI data with construction PMI coming in well above 50 yesterday at 55, yet if the ONS is to be believed, this is the sector that was the biggest drag on GDP in the last quarter.

Today’s April Services PMI is expected to follow in the footsteps of its smaller manufacturing and construction siblings and remain in expansion territory as Q2 gets under way, coming in at 54.1, down slightly from March’s 55.3.

Despite these PMI figures, it seems likely that speculation will continue about further QE ahead of next week’s Bank of England rate meeting, especially after yesterday’s money supply figures.

In the US, yesterday’s disappointing ADP numbers for April have reignited concerns about the US labour market especially after the disappointing Non-farm payrolls numbers in March.

The drop to 119k has focussed the markets attention on tomorrow’s April payrolls number. With the Fed apparently looking increasingly split on the matter of further stimulus or the prospect of it. Further QE probably isn’t as likely as spread betting markets think it might be.

Today’s weekly jobless claims are expected to remain around the 380k level, still well below the 400k level that could be seen as a psychological pressure point.

EURUSD

 
Still in the broader range, the euro remains capped at trend line resistance at 1.3285 from the March highs.

It would seem patience is the order of the day as we continue the sideways consolidation seen since mid-February. A break through 1.3300 targets the 200 day MA at 1.3475.

With the lower line support on the triangle now at 1.3050, we need a break-out soon or the impulsive nature of the pattern will reduce.

The break of the triangle continues to remain the primary pattern and could well signal a 500 point move if it breaks out.

To open up the lows this year at 1.2630 we need to see a concerted break below 1.2975.

GBPUSD

 
Another negative day for the pound but it continues to hold up relatively well, despite a lower low at 1.6160.

The positive momentum remains intact but does appear to be waning given the proximity of the trend line resistance at 1.6320 from the 2011 highs at 1.6750.

This suggests we could see a downward test towards 1.6050 and the highs at the beginning of April.

Only a move below 1.6050 retargets the long term trend line support at 1.5940 from the January lows at 1.5235 which continues to act as support on the downside.

EURGBP

 
Another strong down day yesterday brings us closer to the 2010 lows at 0.8065.

Over the past week every rally has been aggressively sold into hence the long upper shadows in the daily candles

The momentum as such remains for a move towards the 2010 lows at 0.8065.

A break here would be very negative for the euro, opening up levels last seen in October 2008, when it touched 0.7700.

Only above the resistance at 0.8220 would retarget the larger resistance at 0.8280 as well as trend line resistance at 0.8300 from the February highs at 0.8505.

USDJPY

 
The failure to hold above 80.45 yesterday keeps the risk tilted towards the downside, however, while above the 79.70 level lows of this week there is a chance that the US dollar could stabilise.

A failure to get above the weekly cloud resistance keeps the current momentum skewed towards the downside. A break below 79.70 would then target 79.20 initially on the way to 78.35 and the 200 day MA.

The 80.42 cloud line should now act as a resistance level and for the dollar to stabilise we would need to see a close back above this key level.

Equity market calls

 
FTSE 100 is expected to open 16 points higher at 5,774.

DAX is expected to open 34 points higher at 6,745.

CAC40 is expected to open 14 points higher at 3,240.

FTSEMib is expected to open 47 points higher at 14,260.

Spread betting carries a high level of risk to your capital and it is possible to lose more than your initial investment. Spread betting may not be suitable for all investors. Ensure you understand the risks involved and seek independent advice if and where necessary.

Forex trading news by Michael Hewson, Analyst, CMC Markets.

CMC Markets is authorised and regulated in the UK by the Financial Services Authority, register no. 173730.

Any CMC Markets research and charting tools are indicative, they are provided for information purposes, they must not be relied upon as investment advice. CMC Markets provide an execution-only service.

The above content should not be construed as a recommendation or offer to buy or offer to sell or solicitation of any offer to buy any security or other financial instrument by CMC Markets. The content is not a recommendation. You should seek independent advice as to 1) your suitability to speculate in any related markets 2) your ability to assume the associated risks 3) the tax, legal and accounting consequences of any transaction.

Category Categories: Financial Markets, Spread Betting News, Spread Betting on Currencies, Spread Betting on Forex, Spread Betting on Indices | Tag Tags: | Comments No Comments »

Financial Spread Betting Markets Rally as Dow Posts Four Year High

Calendar May 2, 2012 | Posted by Robert

Yesterday’s rally in UK and US markets which saw the Dow post a new four year high, should translate into a broadly positive open in European markets this morning, as the rest of Europe plays catch up on yesterday’s ISM induced move higher.

Whether Europe manages to hold on to these gains will likely depend on this morning’s economic data from Europe with the final prints for Italian, French, German and Eurozone manufacturing PMI data, as well as German unemployment data for April.

The expectation for the PMI data isn’t going to be high with contractions expected on all measures with readings of 46.6, 47.3, 46.3 and 46 respectively.

The one positive is likely to be German unemployment data which has run contrary to the rest of Europe’s unemployment data for months now, slipping as it has to post reunification lows of 6.7 percent. Another drop is expected in April with a drop of 10k expected.

There the good news is expected to end because the Eurozone unemployment is expected to rise further, with a March figure rising to 10.9 percent. Such a figure is likely to prompt further calls from EU leaders affected by rising unemployment to call for an easing of austerity, from EU leaders and Berlin is particular.

This is likely to be resisted by politicians in Berlin, conscious of the fact that the worst of the crisis appears to be staying outside their borders for now.

In any case, the topic of the European economy is highly likely to be mentioned at today’s meeting of EU finance ministers, which is supposed to be discussing EU bank capital requirements rules, even if it’s not supposed to be on the agenda.

In the UK, yesterday’s manufacturing PMI’s numbers were a little disappointing; particularly the new orders component which dropped to 49, but the headline number remained the right side of 50 at 50.5.

Today’s construction PMI is also expected to slip back from March’s 56.7, but it is still expected to come in at 54.

There the positive news is likely to end with mortgage approvals for March expected to slip back to 48k while March net consumer credit is also expected to remain weak at 0.3bn.

The money supply numbers will be closely watched with an eye on next week’s Bank of England meeting and any further possible QE, especially if they remain weak.

In the US, financial spread betting investors will be hoping for a continuation of yesterday’s positive sentiment with the latest ADP payrolls numbers for April.

Expectations are for job gains of 175k, down from 209k, still broadly positive, but it is noticeable that the gains are starting to head in a downward direction since we saw the heady heights of nearly 300k at the beginning of the year.

US factory orders for March are also expected to be announced with a decline of 1.5 percent expected, down from February’s 1.3 percent rise.

EURUSD

 
Another failed attempt to overcome trend line resistance at 1.3285 from the March highs saw the single currency slip back yesterday and as such the onus remains for a continuation of the sideways consolidation seen since mid-February.

A break through 1.3300 targets the 200 day MA at 1.3475.

The lower line support on the triangle now lies at 1.3050, while there is also trend line support from the 1.3000 April lows at 1.3215.

The break of the larger triangle continues to remain the primary pattern and could well signal a 500 point move if it breaks out.

To open up the lows this year at 1.2630 we need to see a concerted break below 1.2975.

GBPUSD

 
We saw a second successive negative day for the pound yesterday, however it did find support around the 1.6180 level.

The positive momentum remains intact but the trend line resistance at 1.6320 from the 2011 highs at 1.6750 should continue to cap any further gains in the short term given the overbought momentum.

This suggests we could see a downward test towards 1.6050 and the highs at the beginning of April.

Only a move below 1.6050 retargets the long term trend line support at 1.5930 from the January lows at 1.5235 which continues to act as support on the downside.

EURGBP

 
After the lows of earlier this week, EUR/GBP attempted a rally back through the 0.8200 level before sliding back.

The momentum as such remains for a move towards the 2010 lows at 0.8065.

Only above the resistance at 0.8220 would retarget the larger resistance at 0.8280 as well as trend line resistance at 0.8300 from the February highs at 0.8505.

USDJPY

 
The US dollar found support at the 79.70 level which provoked a rally back towards the 80.42 cloud resistance level.

This failure to get above the weekly cloud resistance keeps the current momentum skewed towards the downside.

A break below 79.70 would then target 79.20 initially on the way to 78.35 and the 200 day MA.

The 80.42 cloud line should now act as a resistance level and for the dollar to stabilise we would need to see a close back above this key level.

Equity market calls

 
FTSE100 is expected to open 16 points lower at 5,796.

DAX is expected to open 47 points higher at 6,808.

CAC 40 is expected to open 26 points higher at 3,239.

FTSEMib is expected to open 69 points higher at 14,661.

Spread betting carries a high level of risk to your capital and it is possible to lose more than your initial investment. Spread betting may not be suitable for all investors. Ensure you understand the risks involved and seek independent advice if and where necessary.

Forex trading news by Michael Hewson, Analyst, CMC Markets.

CMC Markets is authorised and regulated in the UK by the Financial Services Authority, register no. 173730.

Any CMC Markets research and charting tools are indicative, they are provided for information purposes, they must not be relied upon as investment advice. CMC Markets provide an execution-only service.

The above content should not be construed as a recommendation or offer to buy or offer to sell or solicitation of any offer to buy any security or other financial instrument by CMC Markets. The content is not a recommendation. You should seek independent advice as to 1) your suitability to speculate in any related markets 2) your ability to assume the associated risks 3) the tax, legal and accounting consequences of any transaction.

Category Categories: Financial Markets, Spread Betting News, Spread Betting on Currencies, Spread Betting on Forex, Spread Betting on Indices | Tag Tags: | Comments No Comments »

European Spread Betting Markets Close Lower as Spain Confirms Recession

Calendar May 1, 2012 | Posted by Robert

Yesterday’s confirmation that Spain had become the latest European country to slip into recession was not greeted particularly positively by investors with most European markets finishing down on the day, capping off a negative month for equities in Europe.

With the majority of European markets closed today due to the Labour Day holiday in Europe, the focus is likely to be on the massive demonstrations planned across Europe, particular in the southern economies, against austerity, unemployment and labour reforms.

These are starting to lead to increasing political tensions across Europe as politicians worry about getting re-elected in the face of discontented electorates.

In the UK following on from last week’s surprise news that Q1 growth contracted, the latest manufacturing PMI data for April is expected to remain in expansionary territory, though it is expected to slip back from the surprise rise to 52.1 in March, slipping back to 51.5.

Last week’s GDP numbers were all the more surprising given the robustness of all sector PMI data seen on this measure since the beginning of the year.

The fact that this data has been so positive helped the pound shrug off last week’s disappointment and has raised expectations that the GDP numbers were being understated and would subsequently get revised higher.

In the US, yesterday’s disappointing Chicago PMI and Dallas Fed manufacturing numbers for April has raised concerns that the recent recovery in US manufacturing could already be starting to run out of steam.

Last week’s disappointing Q1 GDP number had already set the tone despite Friday’s rally and financial spread betting markets will be looking towards a number of key data releases this week for reassurance that this recent deterioration is temporary in nature.

Wednesday’s ADP numbers as well as Friday’s non-farm payroll numbers for April are expected to give a key insight into the employment market and whether or not it is starting to slow down significantly.

First of all we have the April ISM number which is expected to slip only slightly from 53.4 to 53.

The prices paid component will also be closely watched for inflationary pressures given that March’s number surprised to the upside to 61, with April’s number expected to slip slightly to 59.

Meanwhile, overnight in Australia the RBA wrong footed the markets by cutting interest rates much more than expected, by 50 basis points in response to a weakening economic outlook and slowing growth.

Lower than expected inflation numbers last week had made a cut of at least 25 basis points almost certain however, unlike the Bank of Japan, the Australian central bank has decided to act decisively. The hope here is that action now could help smooth out a dip in economic activity in the coming months.

The extent of the cut suggests that the bank is concerned at the pace of a possible slowdown. Despite an apparent recovery in Chinese manufacturing PMI, policymakers remain concerned about the sustainability in recent economic activity, not only from their biggest export market, but also in the local economy.

EURUSD

 
The trend line resistance at 1.3285 from the March highs continues to cap the upside and as such the onus remains for a continuation of the sideways consolidation seen since mid February.

A break through 1.3300 targets the 200 day MA at 1.3475.

The lower line support on the triangle now lies at 1.3050, while there is also trend line support from the 1.3000 April lows at 1.3215.

The break of the larger triangle continues to remain the primary pattern and could well signal a 500 point move if it breaks out.

To open up the lows this year at 1.2630 we need to see a concerted break below 1.2975.

GBPUSD

 
Also in FX spread betting, the pound finally posted a negative day yesterday after ten successive up days.

The positive momentum remains intact but the trend line resistance at 1.6330 from the 2011 highs at 1.6750 looks likely to cap any further gains in the short term given the overbought momentum.

This suggests we could see a downward test towards 1.6050 and the highs at the beginning of April.

Only a move below 1.6050 retargets the long term trend line support at 1.5920 from the January lows at 1.5235 which continues to act as support on the downside.

EURGBP

 
Another 22 month low at 0.8122 yesterday keeps the downward momentum intact for a move towards the 2010 lows at 0.8065.

Only above the resistance at 0.8220 would retarget the larger resistance at 0.8280 as well as trend line resistance at 0.8300 from the February highs at 0.8505.

USDJPY

 
The downward momentum from last weeks move back inside the weekly cloud saw the US dollar slide back and find support at the 79.70 area initially.

A break below 79.70 would then target 79.20 initially on the way to 78.35 and the 200 day MA.

The 80.45 cloud line should now act as a resistance level and for the dollar to stabilise we would need to see a close back above this key level.

Equity market calls

 
FTSE 100 is expected to open 2 points higher at 5,740.

Germany, France and Italy are closed for Labour Day Holiday.

Spread betting carries a high level of risk to your capital and it is possible to lose more than your initial investment. Spread betting may not be suitable for all investors. Ensure you understand the risks involved and seek independent advice if and where necessary.

Forex trading news by Michael Hewson, Analyst, CMC Markets.

CMC Markets is authorised and regulated in the UK by the Financial Services Authority, register no. 173730.

Any CMC Markets research and charting tools are indicative, they are provided for information purposes, they must not be relied upon as investment advice. CMC Markets provide an execution-only service.

The above content should not be construed as a recommendation or offer to buy or offer to sell or solicitation of any offer to buy any security or other financial instrument by CMC Markets. The content is not a recommendation. You should seek independent advice as to 1) your suitability to speculate in any related markets 2) your ability to assume the associated risks 3) the tax, legal and accounting consequences of any transaction.

Category Categories: Financial Markets, Spread Betting News, Spread Betting on Forex, Spread Betting on Indices | Tag Tags: | Comments No Comments »

Spread Betting: Q1 GDP to Confirm Spanish Double Dip

Calendar April 30, 2012 | Posted by Robert

The latest Q1 GDP data from Spain is expected to confirm that the country has slipped into a double dip recession, with expectations of a contraction of 0.4 percent in the first quarter.

Coming, as it does on top of record unemployment data last week, as well as massive demonstrations against austerity on the streets yesterday, the problems for European leaders continue to mount up.

Talk of creating a “bad bank” for distressed Spanish property loans has been talked about, given the refusal of Spanish ministers to accept the need for a bailout for its debt soaked banking system.

Given continued rises in unemployment and a crashing economy Spanish ministers may be faced with no other choice but to accept some form of bailout whether they like it or not.

In some ways Spain can take some comfort that it’s not unique in its problems and the fact that it joins pretty much the rest of Europe, excluding Germany and France in recession.

However, it doesn’t change the fact that European leaders need to come up with a plan for growth, and quick.

The need for a change of plan away from the austerity approach of debt reduction already appears to be gaining traction, after ECB President Mario Draghi expressed the need for a growth pact last week.

It would appear that with governments falling like dominos, EU leaders appear to be waking up to the fact that they are ultimately accountable to their people’s wishes.

With changes of government likely in France and Greece in the next seven days, the direction of the debt crisis could take a very different path in the next seven days. Even regional elections in Italy could well mark the end of the honeymoon period for Italian PM Mario Monti as populations pay the price for years of economic mismanagement.

Elsewhere in spread betting, last week’s lower than expected US GDP number has reignited the inevitable speculation about the likelihood of further QE from the Federal Reserve. In some ways today’s PCE data should be instructive given that it is the Fed’s preferred measure for inflation targeting.

The annualised core measure is expected to remain at 1.9 percent in March, while the monthly figure is expected to rise slightly to 0.2 percent.

Any figure hotter than that is likely to see the hawks on the FOMC reiterate their opposition to further easing measures in light of the inflation risks.

Personal income and personal spending for March is expected to reinforce concerns about consumer finances with incomes fairly flat around 0.2 percent.

Meanwhile, personal spending is expected to slip back from 0.8 percent in February to 0.4 percent, suggesting that even if consumers are spending it is coming from savings, or credit.

EURUSD

 
While the trend line resistance at 1.3290 from the March highs caps the onus remains for a continuation of the sideways consolidation seen since mid-February.

A break through 1.3300 targets the 200 day MA at 1.3480.

The lower line support on the triangle now lies at 1.3050, while there is also trend line support from the 1.3000 April lows at 1.3175.

The break of the larger triangle continues to remain the primary pattern and could well signal a 500 point move if it breaks out.

To open up the lows this year at 1.2630 we need to see a concerted break below 1.2975.

GBPUSD

 
The positive momentum pushing the pound higher continued for the tenth day in a row last week sending it nearer to the trend line resistance at 1.6330 from the 2011 highs at 1.6750.

There is a concern that momentum is now starting to look a touch overbought, despite the bullish signals being given off from both the daily and weekly charts.

This suggests a downward test is somewhat overdue towards 1.6050.

Only a move below 1.6050 retargets the long term trend line support at 1.5910 from the January lows at 1.5235 which continues to act as support on the downside.

EURGBP

 
The single currency continues to weaken and will continue to do so while below the resistance at the 0.8220 area.

The onus remains towards the downside and a move towards the 2010 lows at 0.8065 as the next target.

Only above 0.8220 would retarget the larger resistance at 0.8280 as well as trend line resistance at 0.8300 from the February highs at 0.8505.

USDJPY

 
Last weeks close back inside the weekly cloud and below the 80.45 cloud support is a concern with respect to the recent upward momentum and suggests that the currency spread betting pair could well see further losses.

The risk of a move towards 79.70 initially has increased in the short term and any move could now extend towards 79.20.

For downside pressure to diminish the US dollar does need to break back and close the week back above the weekly cloud at 80.50 and then advance beyond the three weeks highs at 81.85/90.

Equity market calls

 
FTSE100 is expected to open 6 points higher at 5,783.

DAX is expected to open 14 points higher at 6,815.

CAC40 is expected to open unchanged at 3,266.

FTSEMib is expected to open 27 points higher at 14,806.

Spread betting carries a high level of risk to your capital and it is possible to lose more than your initial investment. Spread betting may not be suitable for all investors. Ensure you understand the risks involved and seek independent advice if and where necessary.

Forex trading news by Michael Hewson, Analyst, CMC Markets.

CMC Markets is authorised and regulated in the UK by the Financial Services Authority, register no. 173730.

Any CMC Markets research and charting tools are indicative, they are provided for information purposes, they must not be relied upon as investment advice. CMC Markets provide an execution-only service.

The above content should not be construed as a recommendation or offer to buy or offer to sell or solicitation of any offer to buy any security or other financial instrument by CMC Markets. The content is not a recommendation. You should seek independent advice as to 1) your suitability to speculate in any related markets 2) your ability to assume the associated risks 3) the tax, legal and accounting consequences of any transaction.

Category Categories: Financial Markets, Spread Betting on Forex, Spread Betting on Indices | Tag Tags: | Comments No Comments »

Shares Spread Betting Guide: Old Mutual

Calendar April 29, 2012 | Posted by Robert

Where can I Spread Bet on Old Mutual?

 

You can place spread bets on Old Mutual shares with:

The spread betting companies mentioned above also offer tax free* spread betting on a range of other financial markets such as stock market indices, commodities and forex.

For more information about:

 

Old Mutual Trading Example

 

On Friday, the price of the Old Mutual Rolling Daily market was 150.3p – 150.7p with spread betting companies such as Tradefair.

As with many shares listed on the leading exchanges, you can bet on the Old Mutual shares either increasing or decreasing in value. With the Old Mutual Rolling Daily market, an investor can speculate on:

a) Old Mutual shares to go above 150.7p, or
b) Old Mutual shares to go below 150.3p.

It should be noted that with the Old Mutual shares spread betting market you trade in £X per penny, where a penny is 1p of Old Mutual share movement. As an example, if you had a stake of £10 per penny and the Old Mutual shares move 5p then that would result in a difference to your profits (or losses) of £50.

 

Old Mutual Equities Spread Trading Example

 

As a brief example, let’s assume you see the real time price on an online spread betting website that shows the spread of 150.3p – 150.7p. After your analysis, you may come to feel that the Old Mutual shares will move higher than 150.7p. As a result:

  1. You think the Old Mutual share price should increase
  2. As a result, you want to go long of the market at 150.7p and you invest £15 per penny
  3. The share price increases with the market moving to 157.1p – 157.5p
  4. With this new spread you could choose to guarantee a profit and settle your bet by selling at 157.1p
  5. Initial buy price: 150.7p
  6. Profit / Loss = (Final Price – Initial Price) x stake
  7. Profit / Loss = (157.1p – 150.7p) x £15 per penny
  8. Profit / Loss = 6.4p x £15 per penny
  9. Profit / Loss = £96.00 profit

 

Nevertheless, if the trade did not move as planned, and had the Old Mutual shares decreased in price, with the spread dropping to 143.2p – 143.6p, then you might decide to close your bet and prevent any further losses. You would do this by selling at 143.2p.

  1. You bought the spread bet at 150.7p
  2. Profit / Loss = (Final Price – Initial Price) x stake
  3. Profit / Loss = (143.2p – 150.7p) x £15 per penny
  4. Profit / Loss = -7.5p x £15 per penny
  5. Profit / Loss = -£112.50 loss

 

Note that when Rolling a bet over to the next day you may incur a charge or income for each day that the trade is maintained. Further information can be found here: Rolling Daily Spread Betting Charges.

(Prices quoted as of 27-Apr-12)

 

Latest Financial Spread Betting Accounts and Offers

 

If you are considering spread trading as a part of your portfolio then for more details on:

 
Important Note: Spread betting is a leveraged investment product, it involves a high degree of risk to your funds and can result in you losing more than your initial stake. Ensure that it fits your investment requirements as it might not be suitable for all types of investor. Before you trade, make sure you are fully aware of the risks. Only speculate with funds that you can afford to lose. Where necessary seek independent financial advice.

* As per current UK and Irish tax law, this may change/differ depending on your own situation.

Category Categories: Financial Markets, Spread Betting on Shares | Tag Tags: | Comments No Comments »

UK Shares Spread Trading Guide: Chemring

Calendar April 28, 2012 | Posted by Robert

Where can I Spread Bet on Chemring?

 

You can place spread bets on Chemring shares with:

The spread betting companies mentioned above also offer tax free* spread betting on a range of other financial markets such as stock market indices, commodities and forex.

For more information about:

 

Chemring Spread Betting Example

 

On Friday, the price of the Chemring Rolling Daily market was 315.9p – 317.1p with Tradefair.

Like the majority of leading shares listed on the stock exchanges, you can speculate on the Chemring shares to rise or fall in value. With this Chemring Rolling Daily market, investors can place a spread bet on:

a) Chemring shares to increase above 317.1p, or
b) Chemring shares to decrease below 315.9p.

Note that with the Chemring market you trade in £X per penny, where a penny is 1p of Chemring share price movement. As a quick example, if your stake was £20 per penny and the Chemring shares move 5p then that would result in a difference to your P&L of £100.

 

Chemring Shares Spread Trading Example

 

Considering an example, let’s say you see the real time price on a spread betting website and it gives the current spread of 315.9p – 317.1p. Having done suitable market analysis, you come to think that the Chemring share price will move above 317.1p. This implies:

  1. You believe that the Chemring shares will go up
  2. Therefore, you choose to go long of the market at 317.1p and you bet £10 per penny
  3. The share price rises and so the spread becomes 329.8p – 331.0p
  4. As a result, you might choose to take a profit and close your bet by selling at 329.8p
  5. Initial price you bought the spread bet at: 317.1p
  6. Profit = (Settlement Level – Initial Level) x stake
  7. Profit = (329.8p – 317.1p) x £10 per penny
  8. Profit = 12.7p x £10 per penny
  9. Profit = £127.00 profit

 

Investments don’t always go to plan. Had the financial spread betting the market failed to move as forecasted, and had the Chemring shares decreased in price, with the spread moving down to 306.0p – 307.2p, then you may choose to close your position and stop any more losses. In order to do this you would sell at 306.0p.

  1. Buy price = 317.1p
  2. Loss = (Settlement Level – Initial Level) x stake
  3. Loss = (306.0p – 317.1p) x £10 per penny
  4. Loss = -11.1p x £10 per penny
  5. Loss = -£111.00 loss

 

Note that when Rolling a bet over to the following day you might incur a charge or income for every day that the trade is continued. Further information can be found here: Rolling Daily Spread Betting Charges.

(Spread trading prices quoted: 27-Apr-12)

 

Latest Financial Spread Betting Accounts and Offers

 

If you are considering spread trading as a part of your portfolio then for more details on:

 
Important Note: Spread betting is a leveraged investment product, it involves a high degree of risk to your funds and can result in you losing more than your initial stake. Ensure that it fits your investment requirements as it might not be suitable for all types of investor. Before you trade, make sure you are fully aware of the risks. Only speculate with funds that you can afford to lose. Where necessary seek independent financial advice.

* As per current UK and Irish tax law, this may change/differ depending on your own situation.

Category Categories: Financial Markets, Spread Betting on Shares | Tag Tags: | Comments No Comments »