Some mixed US economic data meant that Wall Street slipped lower on opening, although successful bond auctions by France and Spain earlier in the day meant that the declines did not turn into a full-blown retreat.
By 3.45pm (London time), the Dow Jones was down 0.2% to 12,022.07, while the S&P 500 was down 0.06% at 1246.18. The FTSE 100 was up 0.25% at 5519.21, having given back many of its gains from earlier in the day.
US economic data remains mixed
Unfortunately for the bulls, US jobless claims proved to be somewhat disappointing this afternoon.
Initial claims rose above 400,000 for the first time in a few weeks. 402,000 Americans claimed for benefits, while the previous week's figure was revised upwards to 396,000 from 393,000. This means that initial claims figures have been upwardly revised 91% of the time in 2011.
However, there was some good news, with the ISM manufacturing index rising to 52.7 for November, up from 50.8 a month earlier. The new orders component of the index rose, but the employment index echoed the drop seen in the Chicago PMI, dropping back to 51.8 from 53.5.
Eurozone bond auctions go well
All may not be what it seems in the bond markets of Europe. Spain and France took their turn to issue debt today, in auctions that were keenly watched by financial spread betting markets. Both auctions went well, with strong demand seen (although the French auction was smaller than normal) even though yields were higher compared to previous occasions.
This might seem paradoxical, but it has an explanation if we consider the role of the European Central Bank (ECB). Banks appear to be buying up the debt in order to provide collateral for loans from the ECB.
The high levels of demand do not reflect any particular desire to invest in the debt of embattled nations, with financial institutions reluctant to keep funding nations whose position remains precarious.
Yahoo rises on bid hopes
Internet firm Yahoo rose 3.4% to $16.25 on hopes that it will soon become the target of a bid from the Alibaba group. Bloomberg reported that a bid might value Yahoo at as much as $20 per share, due to tax savings related to Alibaba and Yahoo Japan. Alibaba is reported to prefer the prospect of a friendly takeover, rather than going hostile.
Better sales at Kingfisher
Home improvement firm Kingfisher was up 3% at 263.2p after the company announced that sales had been lifted by unseasonably warm weather during the three months to the end of October.
The company's French division, which accounts for around 40% of sales, reported strong sales, causing analysts to anticipate a 1% upgrade to pre-tax profit.
CEO Ian Cheshire said that the firm was likely to use its cash pile to pick up individual stores from competitors, rather than buying companies outright. Worryingly, the company's China business saw sales down 5%, due to a weak housing market.
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.
IG Index
- Live Prices, Charts, Indices, Equities, Commodities, Forex and more >> read the
IG Index Review.
The above content does not constitute investment advice, it is provided purely for information purposes and is delivered as a personal view of the writer. Neither the contributing company (or writer) nor Online-Spread-Betting.com accepts any responsibility for any use that may be made of the content.
'Yahoo Spread Betting Market Up on Alibaba Takeover Speculation', Article by IG Index, last update: 1-Dec-11
Content approved / provided by IG Index which is Authorised and regulated by the Financial Services Authority, FSA Register number 114059.
Related articles:
Spread Betting Daily, 18-Apr-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, 17-Apr-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.
