Hang Seng Spread Betting Market Rises on Positive US Leads
|
|
|
For today's update see Spread Betting Daily.
The Daily Update from Anthony Grech, Research Analyst, IG Index.
Spread Betting 16 December 2011: 11.00am Update
As the week draws to a close, markets have pushed higher for the second successive day, helped by broadly upbeat readings from the US yesterday. However, caution still persists, even as everyone begins to look eagerly towards Christmas.
By 10.30am (London time), the FTSE 100 was up 0.6% at 5432.66, while the FTSE 250 had risen 0.4% to 9868.85. European markets were more muted however, with France and Spain losing ground, and Germany and Italy making only small gains.
US economic data boosts outlook
It seems that optimism about the US economy is the reason behind this morning’s gains on the FTSE 100. Yesterday’s economic data, and strong earnings from FedEx, have buoyed investors as the penultimate week before Christmas draws to a close.
Some are beginning to hope that the US economy is starting to decouple from the Eurozone crisis, as the world’s largest economy shows its resilience. Shares in delivery firm FedEx were up 8% following its results, cheering investors as the company is seen as a useful barometer of the health of the wider US economy.
However, some were more cautious, noting that the departure of DHL from the US delivery scene means that FedEx and UPS are acting carefully in order to maintain volumes.
I also remain sceptical that the US can remain fully immune from the impact of the Eurozone crisis. The most pernicious element so far has been a sapping of confidence among investors, who worry that all companies, regardless of their financial health or the strength of current trading, will be hit hard if the currency union breaks apart.
What spread betting investors have been crying out for, and what has been conspicuously lacking from politicians, is any concrete deal that promises a long-term solution. Everything so far has been merely a sticking plaster, which has meant that the crisis is now about to enter its third year. The Eurozone crisis was the theme of 2011, and it will be the theme of 2012 as well.
Fitch goes for the banks
Fitch Ratings (remember, they’re the ones owned by a French company) acted to cut its ratings for seven major banks, citing increasing challenges in financial markets. BNP Paribas, Deutsche, Bank of America, Citigroup, Goldman Sachs, Credit Suisse and Barclays were all cut down by at least one notch, with the last two dropping by two notches.
The agency added that new regulations might limit the growth potential of the firms in the future, although it acknowledged that they had made progress in building up their capital buffers. The downgrades had little impact however, with Barclays up 0.7% at 171.75p. The other UK banks rose in sympathy, with the other big four up around 1% this morning.
Blacks Leisure
If the future for the Eurozone looks bleak, for Blacks Leisure it is now positively abysmal. Only three days after hinting that they were looking at a deal, rival Sports Direct has withdrawn any potential offer for the company (I am tempted to wonder whether you can really withdraw a ‘potential’ offer, but that is somewhat tangential).
Sports Direct said that it was still a ‘committed’ shareholder of Blacks, however. Shares in Blacks Leisure duly slumped, and were down over 25% at one point, hitting a low of 1.6p.
Looking ahead
US futures are stronger this morning, up 46 points for the Dow and 10 points for the S&P 500, suggesting that Wall Street will make further headway this afternoon. US November CPI data is due out later, at 1.30pm (London time), but apart from this it’s a fairly quiet day on the economic front.
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.
|
Spread Betting 16 December 2011: 5.00am Update
US markets bounced overnight on the back of some encouraging economic data.
Sentiment was also lifted by an impressive Spanish bond auction, which saw it raise almost double its target. However, head of the IMF Christine Lagarde warned that Europe’s debt crisis is escalating to a point where it requires action by countries outside the European Union. These comments put a dampener on the rally and saw markets pare gains.
Among the major averages, the Dow Jones Industrial Average gained 0.4% to 11,869. The S&P added 0.3% to 1216 and the NASDAQ was up 0.1% to 2541.
Asia & Australia
Across Asia, regional spread betting markets are enjoying modest gains after picking up a fairly positive lead from US markets. The US is in recovery mode, with recent data suggesting the world’s biggest economy has put the worst behind it.
However, trading is relatively subdued into the end of the year, with some caution being exercised due to a potential S&P downgrade. On the data front, there is not a lot happening in the Asian session, with no major economic releases.
The Hang Seng, Nikkei and ASX 200 are up between 0.2% and 0.4% each. US and European markets are pointing towards modest gains on the open.
The Australian share spread betting market is up 0.4% at 4156, with the defensive sectors leading the mild gains. However, there is some caution after Standard & Poor's warned that low credit growth would crimp US bank earnings, and after Lagarde stated that the world economic outlook is ’quite gloomy’.
The local banks are holding up fairly well, with ANZ leading the pack after putting on 1.3%. The retailers are struggling after JB Hi-fi issued a profit warning. JBH is down 13% and has dragged the consumer discretionary sector lower. There are some bright spots in the materials sector, with the big miners posting gains.
Europe
Tonight traders will be looking for positive comments from Mario Draghi, who is scheduled to speak in early European trade. US core CPI will also be announced, however given the Federal Reserve is not looking to put the Fed funds rate up anytime soon, don’t expect this to spur too much volatility.
On another note, Reuters is reporting, citing EU diplomats that the next EU summit is scheduled to be held on February 7 to 8. So if we do see risk assets deteriorating through January, this will again come into focus as the next ‘key date’ which the market can get excited about, only to be disappointed once we know the outcome.
There is no major economic data due out of the UK tonight. Ahead of the European open we're calling the FTSE up 34 at 5435, the DAX up 29 at 5760 and the CAC up 13 at 3012.
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.
|
"Hang Seng Spread Betting Market Rises on Positive US Leads" last update by AG, 16-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: 21-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: 18-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.
|
|
