Crude Oil Spread Betting Markets Rise on Iranian Comments Over Straits of Hormuz
|
|
|
For today's update see Spread Betting Daily.
The Daily Update from Anthony Grech, Research Analyst, IG Index.
Spread Betting 29 December 2011: 12.00pm Update
After yesterday's excitement, markets have struggled to establish a direction this morning, making only slight gains and failing to push any higher. An Italian bond auction provided some temporary volatility, but overall markets remain hesitant in the low period between Christmas and the new year.
By 11.30am (London time), the FTSE 100 was up just 9 points at 5515.62, while its companion index, the UK-focused FTSE 250, was down 8 points at 10,004.37.
Italian bond auction dominates quiet trading
Another relatively successful bond auction by Italy helped spread betting markets to remain in positive territory this morning. Despite this, the atmosphere remains decidedly cautious following yesterday's sharp falls on the Dow and in London, where the FTSE 100 gave up all of its gains as US markets dropped.
Rome dipped its toe into the bond markets for the second time in as many days, auctioning off three and ten-year government bonds, with both issues seeing yields fall. However, the ten-year yield remains uncomfortably close to the dangerous 7% level, at 6.98%.
The drop in yields was nothing like as a great as that seen yesterday, when interest levels on short-term paper halved. As the day proved later, even this was not sufficient to cause markets to rally, and investors were nervous that a similar situation may unfold today.
There seems to be little appetite at present for a year-end rally to match the pre-Christmas rally that we saw last week, with fund managers and traders looking to preserve their funds in easy to access cash format.
Yesterday's revelations from the ECB that banks parked a record amount of cash with it during December did nothing to help matters, and this lack of confidence has permeated throughout all levels of the financial system.
2011 was the year of multiple summit disappointments for investors, as politicians met time and again, and each time failed to craft anything more concrete than a fine form of words.
Oil calm on US-Iran spat
The crude oil spread betting market has received some attention in the past two days, as the Iranian and US navies make various noises about the Straits of Hormuz.
Yesterday, Iran said that it would respond to any oil sanctions with the closure of the vital waterway, but the US Fifth Fleet, based in Bahrain with responsibility for the straits, said that it would not tolerate any closure of the waterways.
Oil futures have remained fairly sanguine despite the deepening war of words, after the initial excitement earlier in the month when Iran first mooted the closure of the straits as part of a military exercise.
However, escalating tensions in the region could send prices higher if it looks as if the two antagonists are coming close to blows.
US pre-market
UK markets are almost entirely devoid of major corporate news today, so markets have essentially trod water all morning. At least this afternoon promises a degree of interest, with US economic data out in substantial quantities.
As well as the usual clutch of weekly jobless claims figures (at 1.30pm), we have the Chicago PMI for December and then pending home sales for November (at 2.45pm and 3pm respectively). All timings are London time.
As with yesterday, US markets are poised to open slightly higher, with the Dow up 19 points and the S&P 500 3.7 points higher, but with nervousness persisting all round, a repeat of yesterday's sell-off is not entirely beyond the bounds of possibility.
Remember that financial spread betting is a leveraged product and can result in losses that exceed your initial deposit. Spread betting may not be suitable for everyone, so please ensure that you fully understand the risks involved.
The above comments do not constitute investment advice and neither IG Index nor SpreadBets.org.uk accept any responsibility for any use that may be made of them.
Advert:
IG Index Spread Betting - No Fees, No Commissions, Free Charts and Live Prices.
Spread Bet on Indices, Forex, Commodities, Shares and more. For details see IG Index.
|
"Crude Oil Spread Betting Markets Rise on Iranian Comments Over Straits of Hormuz" last update by AG, 29-Dec-2011
Warning: Financial spread betting carries a high level of risk. You can lose more than your initial investment or stake. Financial spread betting may not be suitable for all investors. Only trade with money that you can afford to lose. Make sure you fully understand the risk involved. If necessary, seek independent financial advice.
Similar articles:
Spread Betting Daily - last update: 17-May-2012
Your daily spread betting update from the insiders. A look at the FTSE 100 and a range of other spread betting markets from Crude Oil to Shares to Gold to . . . read more Spread Betting Daily.
Spread Bets Daily Markets - last update: 16-May-2012
Spread Betting Daily News - A daily trading update from IG Index. Every weekday the experts offer their view of the markets . . . read more Spread Bets Daily Markets.
Shares Trading: AstraZeneca Declines on Plummeting Pre-Tax Profits - last update: 26-Apr-2012
Drug maker GlaxoSmithKline dropped 0.4% after it reported a 13% decline in first-quarter profits, while AstraZeneca declined 5.6% after it reported a 40% drop in pre-tax profits. Unilever shares climbed 3% to 2635p after sales rose . . . read more Shares Trading: AstraZeneca Declines on Plummeting Pre-Tax Profits.
ARM Holdings Spreads Rally amid Stellar Apple Results - last update: 25-Apr-2012
In equities spread trading, ARM Holdings was the top FTSE 100 gainer, up 4.3%, bouncing after a lukewarm reception to in-line results from the British chip designer on Tuesday. The price gain was on the back of forecast-beating . . . read more ARM Holdings Spreads Rally amid Stellar Apple Results.
Spread Trading: Rallying Banking Stocks Push FTSE Higher - last update: 24-Apr-2012
Banking stocks led the FTSE's marginal recovery. Lloyds rose 2.25 %, while Barclays, Standard Chartered and HSBC spread trading markets were up by 1.34%, 0.15% and 0.1% respectively. Miners also edged up today . . . read more Spread Trading: Rallying Banking Stocks Push FTSE Higher.
Index Spread Betting: FTSE Falls 100 Points as Sarkozy Losses Election Round - last update: 23-Apr-2012
The FTSE 100 shed a hundred points during the morning session as uncertainty over the French presidential election on Sunday unnerved investors. Current French President Nicolas Sarkozy lost to Francois Gerard Georges . . . read more Index Spread Betting: FTSE Falls 100 Points as Sarkozy Losses Election Round.
Broker Upgrade Boosts Lloyds Shares Spread Betting Market - last update: 20-Apr-2012
Elsewhere in shares spread betting, Lloyds was the second-biggest FTSE 100 gainer, up 3.5% as Investec Securities reiterated its 'buy' rating on the part state-owned British lender. Unsurprisingly, shares in Barclays and . . . read more Broker Upgrade Boosts Lloyds Shares Spread Betting Market.
FTSE 100 Spread Betting Index Rises on Successful Spanish Auction - last update: 19-Apr-2012
The FTSE 100 spread betting index traded at 5783.8, gaining 0.64% by midday (London time) on the back of a successful Spanish bond sale. Spain sold €2.541 billion of debt, slightly above the upper end of their target . . . read more FTSE 100 Spread Betting Index Rises on Successful Spanish Auction.
Increased Gold Output Causes Fresnillo Spreads to Rally - last update: 18-Apr-2012
Also in shares spread betting, Fresnillo was one of the mining sector's best performers, gaining more than 3% as gold output was ahead of target, due to the opening of a new mine, Noche Buena. This came despite an . . . read more Increased Gold Output Causes Fresnillo Spreads to Rally.
EUR/USD Forex Spreads Push Higher Despite Rising Spanish Yields - last update: 17-Apr-2012
Talk on the floors seems to be centred on the sharp move higher for the EUR/USD financial spread betting market in US trade, despite no one single catalyst to attribute the move too. One gets the sense though that $1.30 seems . . . read more EUR/USD Forex Spreads Push Higher Despite Rising Spanish Yields.
Spread Betting Daily Index - An index of Mid-Morning Daily Spread Betting Reports covering the key Index, Forex, Shares and Commodities markets.
|
|
|
Free Financial Email: Latest Spread Betting Offers and where to find narrow spreads.
Click here to sign up.
|
|
