Chinese export figures boosted Wall Street stocks this afternoon, sending copper and oil prices soaring upwards alongside investor’s hopes for global trade prospects.
China’s Shanghai Composite Index led gains in emerging markets this morning as Reuters announced that the country’s exports showed a 50% year on year increase in May and new loans rose more than expected – news which boosted the Shanghai index by 2.8%. Also see China Enterprises Index Spread Betting.
The figures have given investors positive evidence that China remains largely untainted by the European debt crisis and its economy will continue to grow despite uncertainty in its largest export market.
Sebastian Paris-Horovitz, chief investment strategist at AXA Investment Managers, Paris said: 'China's export numbers showing that global trade remains strong are helping lift market sentiment.' [1] Investors were clearly in agreement on this point, as indices in China, South Africa and Russia gained ground today.
In the US, the Dow Jones Industrial Average rose 0.95% to 10035.36 by 4pm (London time) this afternoon. Banks and pharmaceutical firms made up the Dow’s winners on opening with JP Morgan Chase adding 0.79% to its share price at $37.48, Bank of America gaining 0.72% at $15.22 and Johnson & Johnson rising 0.78% at $58.18. Pfizer was also up at $14.49 (+0.41%). The S&P500 also rose 1.06% to 1073.25
Positive news from China generally leads to gains in the commodities market and today was no exception, showing rallies in the oil and copper markets. Copper spreads rose 2.8% to $6,335 while US Oil spreads consolidated yesterday's gains. Crude Oil prices rose by as much as 1.7% in New York, reaching $73.24 a barrel.
There were also further positive indications from Federal Reserve Chairman Ben Bernanke who announced that while the Fed expects only a slight decline in unemployment, overall growth is set to reach 3.5%.
In UK news, travel operator Thomas Cook will drop out of the FTSE 100 this week, following losses sustained during the volcanic ash disruption. The London Stock Exchange, which dropped 0.75% to 594p today, is also set to move into the FTSE 250, making way for power group Essar and African Barrick Gold. Currently the UK’s leading index is trading 44 points higher (+0.88%) at 5825, 4.30pm (London time).
Source: [1] Bloomberg News (9 June 2010)
IG Index
- Live Prices, Charts, Indices, Equities, Commodities, Forex and more >> read the
IG Index Review.
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 content does not constitute investment advice. Neither Online-Spread-Betting.com nor IG Index accepts any responsibility for any use that may be made of the above.
Note - 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.
'Spread Betting News 9 Jun 2010', Article by IG Index, last update: 9-Jun-10
Related articles:
Spread Betting Daily, 9-Feb-12,
The daily afternoon spread betting update featuring the key stock market indices, forex, shares and commodities markets. Daily updates focus on the spread betting markets as the UK closes and the US continues to...see: Spread Betting Daily
Spread Betting News Daily, 8-Feb-12,
The afternoon spread betting update from IG Index - a look at the spread betting markets with the UK closing and the US markets just...see: Spread Betting News Daily
Looking to improve your trading results? Get free trading tips and trading analysis as well as the latest trading offers »
Trading News.
Risk Warning:
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.
Disclaimer:
Online-Spread-Betting.com does not endorse the information and
analysis available on this site. It is provided purely for information
purposes and is delivered as a personal view of the writer. Under no circumstances
is the information hereon to be used or considered as, an offer to sell, or a
solicitation of any offer to buy. The website content does not constitute investment
advice and neither the individual contributor nor Online-Spread-Betting.com accepts any
responsibility for any use that may be made of the content.
* Tax Free Trading:
Tax law is subject to change. It may also differ if you pay tax in a jurisdiction outside the UK.
