| January 05, 2009
Excerpt from: Stock Indices CFDs and Spread Bets | | Spread bets and CFDs on the stock market | Spread betting and contracts for differences on world stock indices should consider that things are looking up in Europe and Asia. Asia ended the day higher, and in Europe, things are looking marginally higher. CNN Money reports on world stock indices:
London, Pairs and Frankfurt were all up less than a percent. The
story was similar across Asia where Tokyo's Nikkei average gained 2.1%
and the KOSPI in Seoul gained 1.4%. Hong Kong's Hang Seng was up 3.5%
on the day, while the All Ordinaries in Australia closed down 0.5%. | | |
| January 05, 2009
Excerpt from: Spread Betting North American Financial Markets | | Spread betting and contracts for differences on U.S. stocks | Spread bets and CFDs on U.S. stocks should consider that things are a bit wobbly this morning. On Friday, the U.S. stock market's Dow Jones Industrial Average closed above 9,000 for the first time since October.
However, even with the optimism brought by Barack Obama's address regarding U.S. economic stimulus, concerns remain. Investors are worried about corporate earnings, and that has led to a lower open stock market opening today.
Right now, the U.S. stock market is mixed, with some sectors gaining as others lose. It looks as though the first "serious" trading day of 2009 is going to be just as volatile as the days leading up to the end of 2008.
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| January 05, 2009
Excerpt from: Futures and Commodity News | | Oil futures price higher than current oil prices | Right now, oil futures prices are higher than current oil prices. Indeed, it looks as though many investors expect oil prices to make something of a recovery by the end of this year, due in large part to the fact that the U.S. economy is expected to start to recover in the latter part of this New Year.
BloggingStocks reports on some of the factors that are likely to contribute to recovery in oil futures this year:
"First, you have a really beaten-down commodity, strange as that may
seem to say about oil, but it really has taken a beating, down more
than $100 in the past year. So you have some traders positioning
themselves on the low price. Second, some buyers of oil are hedging
their cost, arguing $60 in a year would be a pretty good price to lock
in for a cost," Dietz said. "Then, you have other traders arguing the
U.S. economic recovery will start by late 2009, which should boost
demand, and oil's price."
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| January 05, 2009
Excerpt from: Financial Spread Betting Strategies | | Greenback gains against euro in forex trading on Barack Obama economic stimulus plan | Financial spread betting strategy should consider that the U.S. dollar is gaining against the euro in forex trading. This is due in large part to President-elect Barack Obama's weekend address about his plans to improve the U.S. economy.
Some of the highlights of Obama's economic stimulus plan include:
- Focusing on infrastructure.
- Focusing on renewable energy.
- Tax cuts.
All of these measures are designed to help the working middle class recover -- and perhaps get the confidence to start spending money again.
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| January 05, 2009
Excerpt from: CFD Trading in International Financial Markets | | Contracts for differences on gold | If you are considering how to trade commodity CFDs, consider gold prices right now. Gold is slipping again, in the second session of the New Year, as demand as a safe haven weakens.
Gold prices are being hurt by the fact that the U.S. dollar is solidly higher against the euro in forex trading, even with issues in the Middle East.
Bulls are still holding out for higher prices in the coming year, insisting that risk appetite is likely to return, and that the economic and geopolitical turmoil that often turns investors to gold is far from over.
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| January 05, 2009
Excerpt from: Bonds and Interest Rates CFDs and Spread Bets | | Spread bets and CFDs on U.K. rates | Spread betting and contracts for differences should consider that U.K. interest rates are expected to fall below 2% this week. This will market the lowest interest rates ever in the history of the Bank of England -- a history that spans 300 years.
The lower interest rates are meant to help stimulate the British economy, which is suffering profusely from the global financial crisis. Problems are especially apparent in the U.K. housing market, which is a rather important part of the British economy. There are hopes that lower interest rates will lead to more real estate investment.
It is also hoped that lower U.K. rates will also provide a catalyst for increased consumer borrowing and spending, leading to better consumer confidence and recovery for retail sales.
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| January 02, 2009
Excerpt from: Stock Indices CFDs and Spread Bets | | Spread betting and contracts for differences on the stock market | Spread bets and CFDs on world stock indices should consider that most of them performed poorly in 2008. While the FTSE 100 lost 31.33%, it was one of the lucky stock indices that didn't lose as much as other indices.
Frugal Bachelor reports on some of those that lost more than the FTSE 100:
- U.S. Dow: 33.82%
- German DAX: 40.22%
- Japanese Nikkei 225: 41.54%
- French CAC 40: 42.64%
- Indian SENSEX: 51.44%
- Chinese SSE: 65.42%
And the winner, of course, is Russia, with the MICEX losing 67.20%.
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| January 02, 2009
Excerpt from: Futures and Commodity News | | Gold futures fall as U.S. dollar strengthens in forex trading | Gold prices are dropping in commodities trading this morning as the U.S. dollar makes gains in 2009. However, despite being down today, in 2008, gold futures made an overall gain.
Even though gold prices are down right now, there is a chance that losses will be limited. MarketWatch reports on the factors affecting gold futures:
Gold's losses on Friday were "tracking movement in the dollar," said
economists at Action Economics. "However, expectations of more U.S.
economic data weakness and continued tension in the Middle East should
limit the pace of any decline." | | |
| January 02, 2009
Excerpt from: Financial Spread Betting Strategies | | Looking at next week's U.S. economic calendar | We've already seen that understanding U.S. economic news can be valuable in formulating financial spread betting strategy. Here are some of the highlights of what to expect next week:
January 5: November construction spending.
January 6: Weekly sales snapshot, Retail sales, November factory orders.
January 7: Mortgage applications, CCI
January 8: Initial jobless claims
January 9: December nonfarm payrolls
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| January 02, 2009
Excerpt from: Bonds and Interest Rates CFDs and Spread Bets | | Spread bets and CFDs on the U.S. bond market | Spread betting and contracts for differences on U.S. Treasuries should consider that they are gaining on this, the first trading day of 2009. The U.S. bond market is advancing as yields head lower.
However, it is uncertain whether this rally for U.S. Treasuries will last. 2008 was the best year for the U.S. bond market since 1995, and there are concerns that 2009 may hold a crash for Treasuries.
This is because economic stimulus may improve risk appetite. Bonds are most often popular when risk aversion is high, since they are considered relatively safe investments.
The U.S. dollar is also up to start out 2009.
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| December 31, 2008
Excerpt from: Understanding Spread Betting | | Wishing you a successful New Year | Spread betting, forex trading and contracts for differences can all be risky. But if you choose correctly, you can enjoy great prosperity.
Best of luck to you in your endeavors, and best wishes for a
Happy New Year!
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| December 31, 2008
Excerpt from: Futures and Commodity News | | Oil futures trying to recover to a certain degree | Oil prices spiked 14 per cent on the last day of 2008 on the word that Russia plans to cut off natural gas to Ukraine. But that's not the only factor that has investors looking at oil futures and seeing increases:
- Worries continue regarding violence in the Middle East and oil supplies.
- OPEC production cuts will take effect in January.
So, even though oil prices are down 61 per cent on the year overall, today was a success for oil futures. We will have to see what happens in 2009, but some believe that the recent crash in oil prices is at an end.
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| December 31, 2008
Excerpt from: Spread Betting North American Financial Markets | | Spread betting and contracts for differences on U.S. stocks | The stock market ended higher today, adding more than 1%. Wall Street has been seeing a bit of a rally as the year draws to a close, mostly on the hopes that a New Year will bring a better stock market. There are hopes that economic stimulus will help Wall Street in 2009.
However, in spite of today's gains, the stock market is down on the year overall. The financial crisis and the global recession have hurt the U.S. stock market, and a true recovery will take some time. The Dow alone is down 55% on the year.
We will see when the New Year begins whether or not optimism for the future is enough to overcome the fundamental problems that remain in the U.S. economy.
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| December 31, 2008
Excerpt from: Stock Indices CFDs and Spread Bets | | Strong dollar hasn't helped NYX in 2008 | One of the more interesting mergers in recent stock index history has been that of the New York Stock Exchange and Euronext to make NYSE Euronext (NYX). However, in a year that has seen a strong U.S. dollar, the news for profits hasn't been that great.
This is where hopes for a weaker dollar in 2009 come in. ZachStocks reports on the connection between forex trading and NYX profits:
Another headwind the company has faced is related to foreign exchange. With the purchase of Euronext, the company now sees roughly 40% of revenue and 70% of operating profits from operations in Europe. A strong dollar throughout much of 2008 has depreciated those profits when stated in dollar terms. However, as US interest rates are cut to near zero, and the Fed is finding new creative ways to pump liquidity into the market, the US dollar is finally beginning to weaken. If the dollar continues to slide in 2009 (which is very likely) this headwind will quickly subside and could even become a benefit to the company.
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| December 31, 2008
Excerpt from: Bonds and Interest Rates CFDs and Spread Bets | | Spread bets and CFDs on interest rates | There are many different interest rates available for spread betting and contracts for differences. Often, it is possible to place wagers on interest rates through performance spreads. And one possibility includes U.S. mortgages rates.
Right now, U.S. mortgage rates are dropping again. As speculation about the Fed Funds rate continues, and as efforts are made to open up credit a little more, it is no surprise that U.S. mortgage rates are still falling.
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| December 30, 2008
Excerpt from: Understanding Spread Betting | | Large risk can lead to large losses when placing spread bets | One of the things that it is important to understand when spread betting is the great amount of risk involved. There are large risks to placing spread bets, which the government considers a form of gambling.
This large risk can result in big gains for those who are savvy -- and lucky -- when it comes to spread betting. However, the flip side of greater risk and reward is larger losses. It is important to realize that as the possibility of big rewards increases, the possibility of big losses increases as well.
Remember that spread betting is undertaken at your own risk, and that it is very possible that you lose a great deal of money.
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| December 30, 2008
Excerpt from: Futures and Commodity News | | Oil futures falter and fall back below $40 a barrel | Oil prices have started falling again as the global economy trumps geopolitical turmoil. Right now, with expectations of U.S. gasoline stockpiles growing, and with the threat that the global recession will continue to stymie demand, oil futures are falling.
Indeed, even continuing Mideast violence between Israel and Gaza, and eminent production cuts by OPEC nations, can't keep oil prices above $40 a barrel. Bloomberg reports on oil futures:
“With most global economies struggling and credit markets
still in an impaired state, it is hard to get too excited about
the upside potential in energy markets attributable solely to
geopolitical factors,” Edward Meir, an analyst at MF Global
Ltd. in Connecticut, said in a note today. | | |
| December 30, 2008
Excerpt from: CFD Trading in International Financial Markets | | Contracts for differences on the euro should consider a bounce | Euro zone economic data, from French GDP data to euro zone retail PMI, is starting to look positive. And that means that the euro has received a bit of a bounce in forex trading.
Contracts for differences on currencies should consider that the euro is moving higher in forex trading. The euro is up against the U.S. dollar and the U.K. pound. In fact, the euro is at record levels against the sterling -- headed for parity for the first time in the history of the euro zone.
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| December 30, 2008
Excerpt from: Spread Betting European Stocks | | Spread betting and contracts for differences on European stocks | Spread bets and CFDs on the European stock market should consider that gains are being made today. As one might imagine, considering the GMAC bailout announced late yesterday, automakers are leading the gains today.
Automakers aren't the only winners today on the European stock market, however. Oil sector stocks, and other energy stocks, are also moving higher. With oil prices heading up due to Mideast conflict, the energy sector is benefiting.
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| December 30, 2008
Excerpt from: Individual Equities CFDs and Spread Bets | | Spread bets and CFDs on individual equities | Spread betting and contracts for differences on GM should consider that the company's financing arm, GMAC, just got a shot in the arm from the U.S. government. Not only is this likely to help GM, but it is also helping the entire U.S. stock market look toward a higher open.
GMAC is the financing operation run by automaker GM. The company is the main way that GM cars are financed through dealerships. However, GMAC has been having problems recently. GM has been seeking help for GMAC, and finally that has come through.
GMAC is to receive $5 billion from the $700 billion TARP fund. (Another $1 billion could be on its way from the U.S. Treasury.) This is meant to help the financial services company get back on its feet. U.S. stock futures are up on the news.
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| December 29, 2008
Excerpt from: Bonds and Interest Rates CFDs and Spread Bets | | Spread betting and contracts for differences on the bond market | The U.S. government, especially the law-making Congress, is trying to figure out what measures can be taken in order to stimulate the economy and help make the current recession shorter. Many different tactics are being applied, and new ideas are thought up regularly.
One of the newer ideas is to help stimulate the economy by encouraging local infrastructure projects. This would be done getting rid of the minimum tax on private activity municipal bonds. Bloomberg reports on the possible tax break for this type of municipal bond:
Neal’s proposal would reverse 23 years of policy. It aims
to increase demand for private-activity bonds by mutual funds
and individual investors who often avoid them because of the
higher taxes and complicated paperwork under the alternative
minimum tax.
Public activity municipal bonds are a different story so far, as they are being seen as possible alternatives to U.S. Treasuries.
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| December 29, 2008
Excerpt from: Financial Spread Betting Strategies | | Considering spread bets in a changing geopolitical climate | One of the things to take into consideration when planning financial spread betting strategy is what kinds of impacts global events will have on the financial markets. Right now, spread bets should consider the current geopolitical climate with regard to Mideast violence.
Israel attacks Gaza
Over the weekend, Israel launched an attack on the Gaza strip, which is controlled by Hamas since democratic elections gave them the edge. Israel is targeting Hamas strongholds, and as a result, global financial markets are responding:
When setting forth financial spread betting strategy, it is important to consider the implications of significant geopolitical issues, since these often influence how the markets respond.
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