Spread Trading Markets Snapshot

• FTSE 100 dropped 0.7% or 40.8 points to 5,774.4.
• FTSEurofirst 300 index declined 1.3% to 1,068.0.
• DJIA edged down 0.1% or 10.8 points to settle at 12,132.5. NASDAQ slipped 0.4% or 11.8 points to close at 2,744.6. S&P 500 shed 0.4% or 5.3 points to 1,286.9.
• Nikkei 225 index is trading 1.1% lower, at 9,857.4.
• In Asia, crude oil for September delivery is trading 11 cents higher at $95.00 per barrel.
• At 0400 BST today, the GBP is trading marginally higher against the USD at $1.6314, 0.1% higher against the EUR at €1.1433 and 0.2% lower against the JPY at ¥126.33.
• For more on trading stock market indices see spread trading on indices.

Spread Trading UK Markets

• UK markets closed lower yesterday, with the FTSE 100 index reversing its early session gains, after US manufacturing data failed to match market consensus, raising worries over the pace of the economic recovery.
• Banks, Lloyds Banking Group, Barclays and Standard Chartered, dipped between 0.5% and 5.0%, as risk appetite decreased among investors.
• Miners, Vedanta Resources, Antofagasta and Rio Tinto, dropped between 2.1% and 2.8%, in line with a fall in base metal prices.
• Oil producers, Cairn Energy, Royal Dutch Shell and Petrofac, lost between 0.1% and 1.6%, as crude oil prices fell.
• Defence related stocks, Smiths Group and BAE Systems declined 3.2% and 3.0% respectively, on worries about the impact on the sector of any potential cuts in the US military budget from the deficit reduction plan.
• FTSE 100 dropped 0.7% to 5,774.4. FTSE 250 fell 0.9% to 11,443.0.
• Banks, Lloyds Banking Group and Royal Bank of Scotland dropped 5.0% and 4.3% respectively, ahead of their earnings updates this week.
• Wolseley lost 3.9%, on concerns that the company’s exposure to US markets would weigh on its performance.
• Miners, Vedanta Resource and Kazakhmys, declined 2.8% and 2.6% respectively, as copper for September delivery fell 7 cents to $4.41 per pound.
• Intertek climbed 3.9%, after the company reported a 17% rise in its interim revenue to £763 million. The company also raised its sales estimates for the full year and increased its interim dividend.
• HSBC gained 2.2%, after the company posted better-than-expected first-half earnings.
• Hammerson advanced 1.4%, benefited by upbeat earnings updates.
• For more on trading UK shares see spread trading on UK shares.

Forex Spread Trading Markets

• At 0400 BST today, the GBP is trading marginally higher against the USD at $1.6314, 0.1% higher against the EUR at €1.1433 and 0.2% lower against the JPY at ¥126.33.
• The EUR is trading slightly lower against the USD at $1.4267.
• The EUR is trading 0.2% lower against the JPY at ¥110.47, as most Asian equity markets traded lower, decreasing the demand for high yielding assets.
• The JPY is trading lower against the USD, on speculation that Japan officials would intervene in currency markets to support exporters.
• The AUD is trading lower against the USD, after a government report showed Australia’s building approvals unexpectedly fell in June.
• Yesterday, the USD ended higher against major currencies, after US leaders reached an agreement to reduce the US deficit and avoid default. The Institute for Supply Management (ISM) reported that the pace of growth in the US manufacturing sector slowed more-than-expected in July.
• For more on trading the forex markets see forex spread trading.

Commodities Spread Trading Markets

• Gold for immediate delivery is trading 0.2% higher today, at $1,621.56 per ounce.
• Gold prices for December delivery fell 0.6% or $9.50 to $1,621.70 per ounce yesterday. This came after US President Barack Obama announced that Democrats and Republican leaders had reached an agreement to reduce the US deficit and avoid debt default, decreasing demand for the precious metal as a hedge against government fiscal mismanagement.
• In Asia, crude oil for September delivery is trading 11 cents higher at $95.00 per barrel.
• Yesterday, crude oil for September delivery closed 0.9% or 81 cents lower at $94.89 per barrel, amid worries over future oil demand, as weaker-than-expected US manufacturing data renewed fears over the pace of the global economic recovery.
• For more on commodities trading see commodities spread trading.