In the markets today we have:

• Markets are on the slide this morning on renewed fears about the economy and the state of the Eurozone. The latter is coming to the fore particularly after a string of ECB governors indicated their desire to remove support measures put in place since the sovereign crisis broke in April. Investors worry that certain countries are not yet ready to be taken off life support and think that any premature withdrawal could damage the Eurozone as a whole.
• In addition, the morning’s news flow from Asia wasn’t good. Japanese Industrial production and retail sales came in below estimates, whilst Australian building approvals slumped by an unexpected -4.7%.
• The FTSE 100 is set to open 20 points lower and US stock market futures are currently down by 0.5%.
• In forex markets, the euro is taking a hit, with the EUR/USD down 0.35%, EUR/GBP down 0.60% and the EUR/JPY down 0.70%, this morning’s biggest move. Keep an eye on the 20 MA today on the EUR/JPY.
• The yen is in the driving seat once again as speculative traders are forced to unwind their carry trade positions. The AUD/JPY is down 0.60% and struggling to make much progress past ¥81.30.
• The USD/JPY continues to show the harsh realities direct currency intervention for the Bank of Japan. The USD/JPY is now just 34 pips from the point that the Bank Of Japan started its rather expensive intervention in currency markets. It seems the Swiss National Bank have given up the ghost with currency interventions – Will the Bank of Japan give it another shot, or admit defeat?
• The British pound is actually holding up rather well today and is one of the strongest non yen/swissy/dollar currencies so far today. The Nationwide House Price index came in at +0.1% versus an expected -0.3%.
• Coming up today we have a feast of data at 13.30 starting with Canadian and US GDP figures, with the former expected to weaken. At the same time we have US unemployment claims with a slight improvement on the cards.
• Following this we have Fed chairman Ben Bernanke testifying before congress at 15.00 followed by another speech at 19.30.

And a quick look at the spread betting markets from yesterday afternoon:

• Aside from the KOF Swiss economic barometer, there were no real news items to lift markets out of their stupor yesterday.
• Perhaps we are a little too used to the big daily moves we saw at the start of the month, but the past week has the feeling of being just a little ‘too quiet’.
• Forex pairs retreated from the extreme points of the day, with the EUR/USD falling back after reaching its highest levels since April.
• The ECB released its latest banking stability report, with analysts highlighting a few points of concern including this line: “Moreover, the continued reliance of some banks on central bank refinancing facilities remains a source of concern.”
• The FTSE 100 struggled to make progress beyond 5600.
• The Dow Jones also entered its third day of congestion. Investors better hope some sort of breakout happens soon, because such consolidation periods near multi week highs have not been a good omen since April.

The Financial Fixed Odds update by David Evans, Market Analyst, BetOnMarkets.

This website content does not constitute investment advice. No individual contributor, contributing company, BetOnMarkets nor Online-Spread-Betting.com accept any responsibility for any use that may be made of the content.

Indices Spread Betting

In the markets today we have:

• Gold has made a record new high this morning, touching $1312 after smashing through the $1300 level last night. Renewed talk of money printing from the Bank of England and US Federal Reserve has pushed investors into the perceived safety (from devaluation) of the precious metal.
• European markets including the FTSE 100 are set to open flat to slightly negative despite a late rally on US markets last night.
• On forex markets, the US dollar is generally weaker with the British pound, yen and Swiss franc making headway.
• The EUR/GBP is down 0.2% in early trading, reversing some, but by no means all of yesterday’s rally.
• It’s interesting to note how relentless the selling pressure has been on the USD/CHF and USD/JPY. Since July there has been just one instance of a rally lasting more than 2 days on the USD/CHF and just two instances of this on the USD/JPY. Even the Bank of Japan’s much vaunted intervention brought only a limited reprieve for the USD/JPY as investors soak up more yen at expense of the dollar.

And a quick look at the financial spread betting markets from yesterday afternoon:

• The British pound experienced severe volatility yesterday on the back of two conflicting news items. Yesterday morning, the UK current account balance came in better than expected at -7.4bn, CBI realised sales came in better than expected and GDP came in unchanged. This was good news for the pound until analysts started unpicking the data.
• For example FT Alphaville commented: “For a start, the GDP number still includes substantial contributions from construction output (revised up to 9.5 per cent from 8.5 per cent) not to mention government consumption (which rose 1 per cent in the quarter)….These can’t last in an austerity environment.”
• Then the Bank of England’s Adam Posen stated that he believed that further monetary easing should be undertaken in the UK. A GBP/USD sell off ensued. Fellow BoE member Andrew Sentance later disagreed with these comments, helping the GBP/USD to stabilse a little , but the damage had been done. The GBP/USD was actually trading near the unchanged mark for the day, but you only needed to look at the EUR/GBP to see that the GBP/USD level was due to dollar and pound weakness cancelling each other out. Against the euro, you can see the pound weakness more clearly.
• Posen’s comments appeared to have driven gold higher as investors looked for stability while central governments race to devalue.
• The slump in the value of the US dollar also helped yesterday’s recovery in gold. The US dollar index hit its lowest level since February after US consumer confidence came in at its lowest levels since March.
• Once again, the Swiss franc appeared to be the key beneficiary with the USD/CHF down nearly 1% on the day. The euro was holding up remarkably well with the EUR/USD up over 0.80%.
• Stock fared little better with the Nasdaq 100 spread betting market the day’s worse performer due to Apple’s opening spike lower.

The Financial Fixed Odds update by David Evans, Market Analyst, BetOnMarkets.

This website content does not constitute investment advice. No individual contributor, contributing company, BetOnMarkets nor Online-Spread-Betting.com accept any responsibility for any use that may be made of the content.

Indices Spread Betting

In the markets today we have:

• European stock markets are heading for a small loss at the open after a nasty final hour sell off last night.
• It has been another quiet trading session in Asia, with forex pairs continuing to trade in a relatively tight range for the most part.
• The Swiss franc is the morning’s standout mover as traders gain confidence that the Swiss National Bank won’t step in to halt the currencies appreciation. There appears to be a race to the bottom in currency markets with each country attempting to devalue their currency enough to make their exports appealing. So far it seems that the US dollar is winning that race and the Swiss franc losing.
• The USD/CHF is down 0.035% and the EUR/CHF down 0.33%. The USD/CHF is still trading in a tight range though.
• The yen is also slightly stronger, with the USD/JPY down 0.11% and the AUD/JPY down 0.27%. The impact of Japan’s big intervention day continues to unwind, but there appears to be a floor at ¥84.00 that traders are not confident of going beyond. It’s a game of blind man’s bluff whereby traders wish to buy the yen, but no-one wants to be long when the Bank of Japan hits the intervention sell button
• The dollar isn’t universally weaker though: the Canadian dollar is down 0.40% and the Australian dollar down 0.22% against the US dollar, as commodities come off the boil. Canada and Australia are big commodity exporters (Gold especially) so their currencies are often seen as commodity plays.
• Coming up today we have the latest UK current account figures. Last night the IMF endorsed the coalition’s budget cuts and today could add further cheer if the deficit comes better than the expected 9.6bn. US consumer confidence follows at 15.00

And a quick look at the spread betting markets from yesterday afternoon:

• Markets reversed their early promise moving into negative territory during the day.
• There was no real negative news stories behind the move: it was more a lack of anything positive to push markets higher.
• There was however a slightly negative reaction to Moody’s reaffirming its negative rating stance on Greek banks and Trichet’s rather mundane question and answer session.
• The euro has traded with a negative bias throughout the day and sold off following Trichet’s speech. Yesterday’s trading ranges were nothing to write home about, but it was interesting to note the resistance forming around Friday’s high.
• The Australian dollar was following a similar pattern.
• The EUR/CHF was rangebound with Friday’s high once again forming a resistance point.

The Financial Fixed Odds update by David Evans, Market Analyst, BetOnMarkets.

This website content does not constitute investment advice. No individual contributor, contributing company, BetOnMarkets nor Online-Spread-Betting.com accept any responsibility for any use that may be made of the content.

Indices Spread Betting

• After Friday’s strong rally, markets look like they have continued the positive momentum over the weekend.
• US stock market futures are up 0.35% in early trading, reaching their highest level since May 14th. Last week the Dow Jones gained 2.38% and the S&P 500 2.05%.
• On Friday the FTSE 100 closed up 1% higher and early indications are that it will add another 30-40 points this morning, pushing it above to levels not seen since April.
• Forex markets are quiet so far with very little movement to speak of throughout the Asian session. The biggest movement so far has come on the EUR/GBP which is down 0.23%.
• Elsewhere in spread betting markets, today’s main mover is ECB president Trichet speaking in front of the committee for European and Economic affairs at 14.00 with a minor speech at 08.00.
• Gold is holding around record highs. The precious metal breached the $1,300 mark for the first time this morning.

The Financial Fixed Odds update by David Evans, Market Analyst, BetOnMarkets.

This website content does not constitute investment advice. No individual contributor, contributing company, BetOnMarkets nor Online-Spread-Betting.com accept any responsibility for any use that may be made of the content.

Forex Spread Betting: FTSE climbs, Euro falls against Sterling

Where to Spread Bet on the FTSE 100

You can trade indices spread betting markets such as the FTSE 100 with spread betting companies like:

• Financial Spreads
• GFT
• IG Index

How to Spread Bet on the FTSE 100

If you decide to spread trade on an index such as the FTSE 100 then, looking at a spread betting company website on Friday 24th September, you would have seen a spread trading price of 5536.0 – 5537.0.

This means you could spread bet on the FTSE 100 to move higher than 5537.0 or to move lower than 5536.0.

When making a spread bet, you trade on every unit the market increases or decreases. For the FTSE 100 market a unit is 1 point of the index’s price movement.

For example, you could decide to spread bet £2 for every point the FTSE 100 goes up or down.

 
Spread Betting on the Market to Rise
 

If you were to buy the FTSE 100 at 5537.0 and the index increased then the market might be re-priced at 5592.4 – 5593.4. If so, you might decide to close your bet for a profit by selling at 5592.4.

Your P&L = (closing price of the market – initial price of the market) x stake per point
Your P&L = (5592.4 – 5537.0) x £2 per point stake
Your P&L = 55.4 points x £2 per point
Your P&L = £110.80 profit

On the other hand, if the market had moved down to, for example, 5487.2 – 5488.2, you could choose to close your bet to restrict your losses. If that were to happen, you would sell at 5487.2.

Therefore, with the same £2 per point stake:

Your P&L = (closing price of the market – initial price of the market) x stake per point
Your P&L = (5487.2 – 5537.0) x £2 per point stake
Your P&L = -49.8 points x £2 per point
Your P&L = -£99.60 loss

 
Spread Betting on the Market to Fall
 

An advantage of spread betting is that investors can sell the markets.

When we started this example, the market was priced at 5536.0 – 5537.0.

If you were to go short of the FTSE 100 at 5536.0 and the index decreased then the spread could change to 5476.9 – 5477.9. In that case, you might want to close your spread bet for a profit by buying at 5477.9.

Your P&L = (initial price of the market – closing price of the market) x stake per point
Your P&L = (5536.0 – 5477.9) x £2 per point stake
Your P&L = 58.1 points x £2 per point
Your P&L = £116.20 profit

On the other hand, if the market increased to 5587.3 – 5588.3, you may want to close your trade to prevent further losses. Therefore, you would buy at 5588.3.

With the same £2 per point stake:

Your P&L = (initial price of the market – closing price of the market) x stake per point
Your P&L = (5536.0 – 5588.3) x £2 per point stake
Your P&L = -52.3 points x £2 per point
Your P&L = -£104.60 loss

FTSE 100 Rolling Daily spread betting prices correct as of 24-Sep-10.

Indices Spread Betting Guide

• Where can I Spread Bet on Indices Markets?
• Where can I find Real-time Spread Betting Prices for Indices Markets?
• Where can I find Live Charts / Candlestick Charts for Indices Markets?
• How do you Spread Bet on Indices Markets to Go Up?
• How do you Spread Bet on Indices Markets to Go Down?

Spread Betting carries a high level of risk to your capital and you can lose more than your initial investment, it may not be suitable for all investors. Ensure you only speculate with money that you can afford to lose and that you fully understand the risks involved and seek independent financial advice where necessary.

Where to Spread Bet on the Dow 30

You can trade indices spread betting markets such as the Dow 30 with spread betting companies like:

• Financial Spreads
• City Index
• IG Index

How to Spread Bet on the Dow 30

Should you decide to spread trade on an index such as the Dow 30 then, looking at a spread trading site like Financial Spreads on Friday 24th September, you would have found a spread betting price of 10709 – 10711.

As a result, you could spread trade on the Dow 30 to go above 10711 or below 10709.

When making a spread bet, investors bet on every unit the market goes up or down. For the Dow 30 market a unit is 1 point of the index’s price movement.

For instance, you could decide to trade £2 for every point the Dow 30 increases or decreases.

 
Buying – Spread Betting on the Market to Increase
 

If you were to go long of the Dow 30 at 10711 and the index rose then the spread might become 10770 – 10772. If that were to happen, you might decide to close your spread bet at 10770.

Profits (or Losses) = (settlement value of the market – opening value of the market) x stake per point
Profits (or Losses) = (10770 – 10711) x £2 per point stake
Profits (or Losses) = 59 points x £2 per point
Profits (or Losses) = £118 profit

However, if the market had decreased to 10657 – 10659, you could choose to close your bet to prevent further losses. In that case, you would sell at 10657.

You would do this with the same £2 per point stake:

Profits (or Losses) = (settlement value of the market – opening value of the market) x stake per point
Profits (or Losses) = (10657 – 10711) x £2 per point stake
Profits (or Losses) = -54 points x £2 per point
Profits (or Losses) = -£108 loss

 
Selling – Spread Betting on the Market to Decrease
 

One of the advantages of placing a spread trade is that investors can short the markets.

At the start of the example, the spread betting price was 10709 – 10711.

If you were to sell the Dow 30 at 10709 and the index fell then the spread might change to 10654 – 10656. If this were the case, you could close your bet for a profit, if so you would buy at 10656.

Profits (or Losses) = (opening value of the market – settlement value of the market) x stake per point
Profits (or Losses) = (10709 – 10656) x £2 per point stake
Profits (or Losses) = 53 points x £2 per point
Profits (or Losses) = £106 profit

Financial markets also move up, if the market were to rise to 10755 – 10757, you could choose to close your trade to restrict your losses. Assuming this was the case, you would buy back at 10757.

You would close your bet with the same £2 per point stake:

Profits (or Losses) = (opening value of the market – settlement value of the market) x stake per point
Profits (or Losses) = (10709 – 10757) x £2 per point stake
Profits (or Losses) = -48 points x £2 per point
Profits (or Losses) = -£96 loss

Dow 30 Rolling Daily spread betting prices quoted as of 24-Sep-10.

Indices Spread Betting Guide

• Where can I Spread Bet on Indices Markets?
• Where can I find Real-time Spread Betting Prices for Indices Markets?
• Where can I find Live Charts / Candlestick Charts for Indices Markets?
• How do you Spread Bet on Indices Markets to Go Up?
• How do you Spread Bet on Indices Markets to Go Down?

Spread Betting carries a high level of risk to your capital and you can lose more than your initial investment, it may not be suitable for all investors. Ensure you only speculate with money that you can afford to lose and that you fully understand the risks involved and seek independent financial advice where necessary.

In the markets today we have:

• US new home sales at 15.00 with a rise to 292,000 expected. Yesterday existing home sales came in above estimates, causing a brief rally in US equities last night. Unfortunately this rally was outweighed by ongoing sovereign concerns.
• We also have US durable goods orders and core durable goods orders at 13.30 with mixed results anticipated. Core durables are expected to rise while durables are expected to drop. Nevertheless both announcements will be keenly followed for further hints on the strength of the US economy. Recently NEBR formally announced that the US came out of recession, but Warren Buffet has already poured scorn on such a pronouncement.
• From Europe we have the IFO business climate figures with a slight drop expected.

A quick look at the markets from yesterday:

• Irish sovereign jitters continued after GNP (Gross National Product) came in 4.1% lower. The country is the first to enter a ‘double dip’ recession as austerity measures bite hard. The worries contributed to a broad swing back towards risk aversion with the FTSE 100 down over 1% and the Dow Jones down 0.50%.
• In addition to the poor Irish GNP data, markets have been spooked by the sharp fall in European output (Services and manufacturing PMI). The Irish GNP failure is particularly important for Europe as a whole as austerity measures were ‘supposed’ to be the solution, with Ireland being held up as an exemplar of how other troubled nations should address their problems. Instead the austerity measures could push them to the brink. Ultimately though, Ireland seems stuck between a rock and a hard place with the real damage done during the credit boom.
• In Forex spread betting, the NZD/USD was yesterday’s biggest mover, falling over 1%

September has been a very strong month for stock markets so far and the euro has powered higher since the 13th without too much of a break.

At the very least, a pull back of this magnitude has been on the cards for spread betting. The severity and duration of the pull back will be telling though.

The Financial Fixed Odds update by David Evans, Market Analyst, BetOnMarkets.

This website content does not constitute investment advice. No individual contributor, contributing company, BetOnMarkets nor Online-Spread-Betting.com accept any responsibility for any use that may be made of the content.

Indices Spread Betting

• The stock markets turned lower last night as investors mulled over the negative tone from the Federal reserve announcement. Sovereign jitters also returned with Irish sovereign debt protection costs soaring to record levels.
• Tuesday’s Irish bond auction received a healthy interest but those bonds were priced at a hefty premium that implied risk in investing in Ireland.
• Not that the euro seems adversely affected at all with the EUR/USD hitting levels not seen since April (before the sovereign crisis broke).
• FX spread betting markets were quiet this morning throughout the Asian session owing to the Japanese bank holiday.
• Elsewhere in the online spread betting markets today, we have French, German and European services and manufacturing PMI from 09.00. These data points tend not to have a huge impact unless the numbers are dramatically different to expectations.
• Following this at 09.00 we get the latest UK BBA mortgage approvals data with a slight dip expected.
• At 13.30 we have US weekly jobless claims with a miniscule rise expected. Then at 10.00 US existing home sales are released with month on month improvement on the cards.
• Gold hit another record high yesterday. You can find gold via the ‘commodities menu’. The monthly chart below shows the rise since 2000.

A quick look at the markets from yesterday:

• The US dollar was hit hard as investors firmed up their suspicions that the Fed’s future policy was going to be conducive to a strong dollar.
• The euro was soaring, and smashed through resistance.
• Gold, once again, hit a new record high of $1296.

The Financial Fixed Odds update by David Evans, Market Analyst, BetOnMarkets.

This website content does not constitute investment advice. No individual contributor, contributing company, BetOnMarkets nor Online-Spread-Betting.com accept any responsibility for any use that may be made of the content.

Indices Spread Betting

• Last night there was a typically volatile reaction to the announcement from the Fed regarding rates and their plans for Quantitative Easing. After much backing and filling, US markets closed roughly where they were just before the announcement.
• Stock market futures have enjoyed a positive Asian session though with European shares on for a positive open.
• FX spread betting markets showed more meaningful moves last night with the dollar coming under immense selling pressure once again. Money flowed quickly into the euro which was already showing strength following the success of the Irish bond auction. The mood has continued this morning with the EUR/USD up 0.33%.
• Traders also pumped money back into the Swiss franc and Japanese yen, though the latter with a more cautious tone. Nobody wants to step on the toes of the Bank of Japan at the moment so any movements lower for the USD/JPY may be slow for some time.
• The Aussie dollar is still storming ahead, reaching its highest level since July 2008, up 0.33% this morning.
• Gold is capitalising on US dollar weakness to push forward to another new high, also see Gold spread betting.

A quick look at the markets from yesterday:

• The Irish bond auction went well from a demand perspective. Although the Irish government still have to pay a yield of 6% on bonds expiring in 2018, up 1% from last month. This has pushed the EUR/ USD higher by 0.50%.
• The news wasn’t so good from the UK with public sector net borrowing to 15.3bn, a record high for the month of August. Higher inflation contributed to higher repayment costs as RPI continues to remain sticky. The pound weakened on the news.
• US housing data has been positive with building permits and building starts coming in above estimates.

The Financial Fixed Odds update by David Evans, Market Analyst, BetOnMarkets.

This website content does not constitute investment advice. No individual contributor, contributing company, BetOnMarkets nor Online-Spread-Betting.com accept any responsibility for any use that may be made of the content.

• European stock markets look set for a positive start after US markets rallied into the close, also see indices spread betting
• The tech heavy Nasdaq composite closed up for the ninth day in a row and is now up 12 out of the last 13 sessions.
• This morning the US dollar is weaker with the GBP/USD and EUR/USD up around 0.3%.
• We have a busy day ahead of us today though starting with UK public sector net borrowing at 09.30.
• We then Canadian inflation (Small rise expected), US building permits (no change expected) and housing starts (no change).
• The day’s focus is the US FOMC meeting, with quantitative easing the hot topic analyst’s are looking for clues on.

Looking back at yesterday afternoon:

• Forex spreads were relatively quiet owing to a quiet economic calendar and Japanese public holiday
• The pressure on US house prices moderated somewhat last week with some ok-ish readings.

The Financial Fixed Odds update by David Evans, Market Analyst, BetOnMarkets.

This website content does not constitute investment advice. No individual contributor, contributing company, BetOnMarkets nor Online-Spread-Betting.com accept any responsibility for any use that may be made of the content.