Spread Betting Daily
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The Daily Update from Anthony Grech, Research Analyst, IG Index.
Spread Betting 3 September 2010: 11.30am Update
The FTSE has traded in a tight range this morning as investors wait for crucial job data from the US due out later this afternoon.
After a strong start to September, volumes on the FTSE have been relatively thin this morning, with some traders still away from their desks for the summer and others simply choosing to wait until this afternoon’s non-farm payrolls are announced.
By 10am in London, the UK’s index of 100 leading shares was up just 13.46 points (+0.25%).
Analyst expectations are for an overall drop of 100,000 jobs in the world’s largest economy, as temporary census workers complete their contracts, while private sector hiring is thought to have risen by slightly over 40,000. The data will be announced in the US at 1.30pm (London time) today, and any significant deviation from these figures could jolt markets out of their current narrow range.
For spread betting, the risk appears largely to be on the downside, given that we have seen a relatively strong start to the month. However, if the job data manages to exceed expectations, it could act as a catalyst for further gains.
Also in the financial spread betting markets, in the absence of anything more concrete, the FTSE is continuing to benefit from ongoing M&A speculation. Autonomy Corporation has added a further 54p (+3.15) to its share price as investors speculate on potential interest in the firm from a number of big-name companies, including Microsoft and Oracle. This adds to yesterday’s already significant rise of 5.2%.
FTSE 250-listed Yell Group was up 2.36% today as it, too, benefitted from further suggestion it may be in line for a takeover bid. The directories publisher added just over 13% yesterday, mitigating some of the 53% drop in value it has seen over the past year.
European markets are following a broadly similar pattern to the FTSE, with the Dax and the Cac up 0.31% and 0.3% respectively.
HSBC was also in the news this morning after a senior executive at the bank suggested it could move its headquarters away from London if the government moves to break up big banks. A senior executive at the bank, Stuart Gulliver, said he was ‘“genuinely concerned’” that the UK banking commission would put forward a recommendation to split up banks. HSBC was up 2.6p (+0.4%) in trading this morning. [1]
BP said earlier today that the cost of cleaning up the Deep Water Horizon oil spill in the Gulf of Mexico had risen to $8 billion – a rise of $2 billion on last month’s estimate. However, the company said that no new oil had escaped from the well since mid-July, when the leak was stopped. The share price increased 1.25p (+0.32%). [2]
Just before 11am in London, the FTSE has added to early gains – up 24 points (0.45%) as investors continue to await the non-farm payroll data.
Sources: [1] [2] BBC News (3 September 2010)
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.
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"Spread Betting Daily" last update by AG, 03-Sep-2010
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