Search

Account Opening Bonus



PLEASE READ THE TERMS AND CONDITIONS HERE

Just Ask

Spread trading the FTSE 100: Key news PDF Print E-mail
Written by Sam Coventry   
Tuesday, 10 August 2010 08:39



Capital Spreads says spread trading clients still selling above the 5400 mark.


The FTSE 100 is 0.51% lower at 5,382.99 at 10:30 AM in Johannesburg.

The JSE - as shown by the chart to the right - has followed its larger cousin lower - the difference being the size of the loss, the JSE is lower by 0.31% at the time of writing.

"The FTSE 100 opened slightly lower this morning, and is hovering just below the 5400 Level at 5381 down 29 points, still unable to break this level with conviction," says Chris Purdy at spread trading company SpreadEx.

Tui Travel is the largest percent loser at the moment after announcing that that it expected full year profits at lower end of expectations, as consumers begin to feel the wrath of the emergency budget.

But the downward pressure is coming mainly from the banks, accounting for around 30% of the loss on the FTSE this morning.

So far trading has been quiet which was to be expected given that the main event of the day is the FOMC rate decision this evening.

"Given that there is speculation of further monetary loosening it is unlikely that there will be any change," says Purdy.

Simon Denham at spread trading firm Capital Spreads gives some technical insight:

"In the markets the highs of just over 5400 remain pretty much intact after the FTSE did its best to break higher several times through yesterday’s session.

"As mentioned our clients sold into anything over the 5400 mark (yet again) and have been rewarded this morning with a pre market dip into the mid 5380’s.

"The momentum is definitely with the bulls but if we do not break higher soon pessimism may start to rear its head.

"The last couple of sell offs in May and June did not actually take much in the way of bad news to get going (in fact the overall news was rather better than it is now!).

"In both cases it was rather more the impression that markets were struggling to push higher and were therefore ripe for a correction. We have now been battering at 5405/15 for over two weeks with no joy it may not take much to reverse sentiment no matter what the corporate news is."
 

Risk Involved

Spread Betting and CFD trading carry a high level of risk to your capital and you can lose more than your initial deposit. These trading products may not be suitable for all investors so seek independent advice if necessary.

Your are currently browsing this site with Internet Explorer 6 (IE6).

Your current web browser must be updated to version 7 of Internet Explorer (IE7) to take advantage of all of template's capabilities.

Why should I upgrade to Internet Explorer 7? Microsoft has redesigned Internet Explorer from the ground up, with better security, new capabilities, and a whole new interface. Many changes resulted from the feedback of millions of users who tested prerelease versions of the new browser. The most compelling reason to upgrade is the improved security. The Internet of today is not the Internet of five years ago. There are dangers that simply didn't exist back in 2001, when Internet Explorer 6 was released to the world. Internet Explorer 7 makes surfing the web fundamentally safer by offering greater protection against viruses, spyware, and other online risks.

Get free downloads for Internet Explorer 7, including recommended updates as they become available. To download Internet Explorer 7 in the language of your choice, please visit the Internet Explorer 7 worldwide page.