| | September 05, 2008 | | Despite the poor employment report from the States, US stocks staged a steep rally after the UK close and we expect a strong opening here on Monday. We expect the FTSE 100 to rally around 80 points on the open on Monday, reversing a large part of today’s losses. We are seeing a trend for switching out of energy and resources and into financial stocks. | | |
| | September 05, 2008 | | Spread bets and CFDs on the U.S. bond market | As the U.S. economy continues to shed jobs, U.S. Treasuries are advancing. Spread betting and contracts for differences on U.S. bonds should consider that as risk increases, government debt looks like a better investment.
Additionally, the news is likely to keep the Federal Reserve in check. There had been talk of raising interest rates in order to combat inflation, but with this latest economic news, the Fed is unlikely to raise rates any time soon. The floundering economy, some think, probably need more help.
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| | September 04, 2008 | | Quick comment from GFT | Despite all the economic despondency the Bank has once again decided to hold out for evidence that inflationary pressures are easing. The decision for the Bank to sit on its hands once more was no surprise, however evidence is rapidly mounting that the UK is edging ever closer to recession. Everywhere you look the economic reality is becoming more and more grim: the falling housing market, the weakening pound, climbing unemployment and a struggling service sector. Oil prices may have dropped 25 per cent from their highs in July so any worries that the Bank might actually need to raise rates have all but disappeared, but it would have been premature to cut today. The next move from the Bank is almost certain to be a cut but we may well have to wait until November or December. GFT’s CPI futures contracts show inflation is expected to peak at around 5 per cent September’s year-on-year data, which will be released in October. | | |
| | September 04, 2008 | | Spread bets and CFDs on interest rates | Policymakers at the Bank of England and the European Central Bank are once again hoping that they can ride out the economic slowdowns in their economies, while trying to keep inflation in check.
While the euro dropped in forex trading against the U.S. dollar on this news, the U.K. pound actually made gains.
The Bank of Canada also kept its interest rate unchanged at 3 per cent.
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| | September 03, 2008 | | Spread bets and CFDs on interest rates | Spread betting and contracts for differences should take in account that there are several rate decisions on tap from now until the end of the week. Some of the decisions that can be expected fairly shortly include those from:
All are likely to remain on hold, as inflation fears battle with a desire to stimulate flagging economies.
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| | September 02, 2008 | | Spread bets and CFDs on Australian interest rates | Spread betting and contracts for differences on RBA rates should consider that they have been cut. Today, the Reserve Bank of Australia cut interest rates for the first time in seven years.
Due to a slowing economy, the rate cut is meant to help pick things up. The Australian economy has been hit recently by credit market worries, as well as declining commodity prices.
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