|  | What's New | The Latest Postings for GFT Global Markets UK | |
|
| September 05, 2008
Excerpt from: Bonds and Interest Rates CFDs and Spread Bets | | 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
Excerpt from: Spread Betting North American Financial Markets | | Spread bets and CFDs on currencies | Spread betting and contracts for differences on North American markets should consider that Canada is doing fairly well today. Even as U.S. payroll data spells a grim outlook in the States, Canada is showing something close to the opposite.
In Canada, the payroll data is much more upbeat, with the Canadian economy continuing to add jobs. This news, combined with the bad news out of the U.S., is helping boost the Canadian dollar in forex trading.
Additionally, a weaker dollar will likely mean a boost for commodities, which should also help the Canadian dollar, since it is a commodity currency.
| | |
| September 05, 2008
Excerpt from: Stock Indices CFDs and Spread Bets | | U.S. economy affects global stock markets | Spread betting and contracts for differences on world stock markets around the world should consider that things are looking somewhat bleak right now. One of the biggest hits to world stock indices today has been the release of U.S. jobs data.
The U.S jobs data is so bad, that worries that things are not turning around for the U.S. economy, as optimistic forecasts had been making, are surfacing at a rapid rate.
Stock markets in Asia and Europe are down on the news, as it further indicates a global economic slowdown, as well as means that U.S. consumers are likely to cut back on the products they buy from foreign companies.
| | |
| September 05, 2008
Excerpt from: Individual Equities CFDs and Spread Bets | | Spread betting and contracts for differences on individual equities | Spread bets and CFDs on individual U.S. stocks should consider Dell right now. Dell is looking to sell its U.S. factories in an effort to streamline its computer business to work better with its market of individual consumers for laptops.
However, despite Dell's success in the computer world in general, it is likely to have a hard time making the deals. The Wall Street Journal reports on the challenges facing Dell:
Dell could face several obstacles to selling its plants. Contract
manufacturers may be hesitant to buy factories in places with high
labor costs, like the U.S., said one person with knowledge of the
talks. And some facilities could be encumbered by agreements with local
governments. | | |
| September 05, 2008
Excerpt from: Futures and Commodity News | | U.S. dollar drops in forex trading on employment data, oil prices gain in commodities trading | Since the beginning of the year a total of 605,000 jobs have been cut and we expect at least another two or three months of negative job growth before the labor market hits a bottom | – | Kathy Lien as quoted in MarketWatch |
However, the struggle to gain in commodities trading may not be won by oil futures. MarketWatch reports on what the future may hold for oil prices:
"The outlook for global economies is looking far from rosy, and is
fueling concerns over demand destruction and pushing oil prices
lower," he said. "OPEC is set to meet on Sept. 9, with many market
participants expecting them to reduce production to prevent
oversupply." | | |
| September 05, 2008
Excerpt from: Financial Spread Betting Strategies | | Gold turns around after U.S. jobs data | Financial spread betting strategy on gold prices should consider that after struggling below $800 an ounce, they are recovering and heading toward $815 an ounce today.
The U.S. dollar is struggling a bit in some quarters (notably against the Japanese yen), and even dipping against the euro in forex trading.
The main problem with the U.S. dollar this morning, and lending strength to gold prices, is that U.S. jobs data is extremely weak and the unemployment figure continues to rise.
| | |
| September 05, 2008
Excerpt from: Bonds and Interest Rates CFDs and Spread Bets | | 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.
| | |
| September 04, 2008
Excerpt from: Stock Indices CFDs and Spread Bets | | Spread bets and CFDs on Japanese stocks | Spread betting and contracts for differences on Japanese stock indices should consider that they are falling rather dramatically right. The stock market is at a five-month low, and there does not appear to be a lot of hope for a recovery soon.
Exports are especially hard hit, since the people that usually buy what Japanese companies make are in countries experiencing economic slowdowns.
Forbes reports on the situation with Japanese stocks:
Big losers of the day included trading houses and marine transport
issues, which are being weighed down by spreading slowdowns in
developing countries, said Naoki Fujiwara, a fund manager at Shinkin
Asset Management in Tokyo.
"The situation (for Japanese stocks) looks difficult," Fujiwara said. | | |
| September 04, 2008
Excerpt from: Spread Betting North American Financial Markets | | Spread betting and contracts for differences on U.S. stocks | Spread bets and CFDs on the U.S. stock market should take into consideration that things are looking somewhat grim right now. Between retailers' earnings expectations and labor market news, confidence in the U.S. economy is once again waning.
Another issue affection the U.S. stock market is a looming Boeing strike. The machinists union is still unhappy with what the company is offering, and are threatening a strike if their demands are met.
Bloomberg reports on pessimism about the U.S. economy and the stock market:
``If you look at the data we have on the U.S. and global
economy, things are only getting worse and that leads me to
believe that demand is going to slow down and slow down pretty
quickly,'' Diane Garnick, a New York-based investment strategist
at Invesco Ltd., which manages more than $500 billion, told
Bloomberg Radio. | | |
| September 04, 2008
Excerpt from: Futures and Commodity News | | Will sugar prices rise with other commodities? | Most commodities move inversely to the U.S. dollar movements in forex trading. Sugar is one of those. Even though we don't think of sugar much, it is still a commodity that one can use in futures trading.
Lately, though, sugar has been following other commodities lower in trading. But today may see something different. Gold prices and oil prices are turning around, gaining as demand rises and as Hurricane Ike begins to cause worries for U.S. oil production.
| | |
| September 04, 2008
Excerpt from: Financial Spread Betting Strategies | | Oil prices head up slightly | Spread bets on oil prices should consider that they are headed up ever so slightly this morning.
After days of falling, oil prices are ticking upward a bit. However, they still remain below $110 a barrel. Real movement on oil prices are unlikely to come until after the U.S. government issues its weekly supply report, and damage from Gustav has been better assessed.
The effects of Gustav, as well as an inventory report, are likely to affect oil prices in the coming week.
| | |
| September 04, 2008
Excerpt from: CFD Trading in International Financial Markets | | Japanese yen gains in forex trading | One of the nice things about CFDs is that it is possible to trade a wide variety of instruments and markets, currency CFDs included.
One interesting development today is that the Japanese yen is gaining in forex trading against many of the majors. FX Street reports on some of the advances made the yen in forex trading:
Yen rose against dollar to 108.12 yesterday and continued it's bullish
advance into the Asian trading session. Japanese economic woes and
abysmal data sees yen strong against high yielding currencies (NZD and
AUD) pushed on by un-winding of carry trades. South Asian currencies
missed the benefits of the lowering in commodities as recession fears
continue. | | |
| September 04, 2008
Excerpt from: Bonds and Interest Rates CFDs and Spread Bets | | 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 03, 2008
Excerpt from: Understanding Spread Betting | | Average Directional Index can help you evaluate trends | One of the tools you can use to help you assess trends in a variety of markets is the Average Directional Index (ADX).
The ADX can be used with a variety of markets, including currency, stock, bond and others. It is an indicator that can help you establish how strong a current trend looks.
ADX
The ADX is not something to use on its own, but it can be a valuable tool as you make spread betting decisions based on market trends. The ADX generally looks at prices from the previous 14 trading days to create a picture of trend strength.
If a trend is strong, then that can help you decide how to place your spread bets on a financial instrument.
| | |
| September 03, 2008
Excerpt from: Spread Betting European Stocks | | Spread betting and contracts for differences on the European stock market | Spread bets and CFDs on European stocks should consider that they are dropping right now. The main culprit is optimism over the economy. There are worries amongst investors that the slowing eurozone economy will cut into company earnings.
Especially hard hit, as one may imagine, is the banking sector. There are worries that, despite the latest news on Lehman, most banks are still going to have trouble raising capital and profits. Bloomberg reports on issues for the European stock market in the banking sector:
``There are maybe some more capital increases to come'' for
financial firms, said Philippe Gijsels, Brussels-based senior
equity strategist at Fortis Global Markets with $62 billion under
management. ``To invest in the sector for the longer term I think
is too early,'' he said in a Bloomberg Television interview. | | |
| September 03, 2008
Excerpt from: Futures and Commodity News | | Commodities trading with oil | Oil futures continue lower in commodities trading as it is apparent that the hurricane known as Gustav did not cause structural damage to oil facilities in the Gulf of Mexico.
Last week, oil prices had risen with every forecast that put Gustav at a strong storm devastating oil operations in its path. However, the truth turned out that the storm weakened, and few oil facilities were even threatened.
As the the news comes in -- and as the U.S. dollar gains strength in forex trading -- oil prices are back below $110 a barrel.
Other commodities are falling as well on the market.
| | |
| September 03, 2008
Excerpt from: Financial Spread Betting Strategies | | Cocoa prices falling in commodities trading | Financial spread betting strategy should take into account the effect that plentiful supplies can have on commodities trading. A good example is cocoa.
Right now, cocoa prices are falling in commodities trading because the supply of cocoa is so great right now. If supplies are restricted, on the other hand, then the prices rise as the commodity is in greater demand.
Bloomberg reports on cocoa prices in commodities trading:
Cocoa is falling on ``continued selling across the board of
commodities, particularly softs, a weakening in oil values plus
indications of upcoming plentiful supplies from the main Ivory
Coast crop resulting from heavy rains,'' Ryan Bennett, a trader
of the beans at Sucden (U.K.) Ltd., wrote in a report today. | | |
| September 03, 2008
Excerpt from: Bonds and Interest Rates CFDs and Spread Bets | | 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.
| | |
| September 02, 2008
Excerpt from: Individual Equities CFDs and Spread Bets | | Spread betting and contracts for differences on Japanese stocks | Spread bets and CFDs on individual equities should consider that they are dropping right now. Between losses for commodity stocks as oil prices plunge and the resignation of Prime Minister Yasuo Fukuda, the Japanese stock market is in chaos.
Bloomberg reports on Japanese stocks:
``New policies from the last Cabinet reshuffle in August
have failed, and we can't emerge from this policy stagnation
under the current political split,'' said Hiroshi Arano, who
helps oversee $26 billion at Mizuho Asset Management Co. in Tokyo.
``It's clear that investors have been frustrated.'' | | |
| September 02, 2008
Excerpt from: Stock Indices CFDs and Spread Bets | | British stocks get boost on FTSE 100 | Spread betting and contracts for differences on the FTSE 100 should consider that things are looking up right now. Spread bets and CFDs on the British stock market should consider the two following factors that are helping:
- Companies -- especially travel companies and retailers -- are getting a boost from lower oil prices.
- The housing market is seeing some cautious optimism, thanks to the latest measures unveiled by the government, designed to help.
As a result, the FTSE 100 is heading higher on the British stock market.
| |
|
|
