Spread betting and contracts for differences on individual equities
Spread bets and CFDs on Northern Rock should continue to use caution, and possibly short for a while longer, as the company continues to be roiled by scandal related to the subprime markets. The Bank of England continues to lend money to financial companies in Britain, adding to the perception that all is not all in that sector. Bloomberg reports on Northern Rock and the stock market:
Northern Rock shares have been hurt ``by a rumor that any bid is more likely to be around 200 pence,'' Martin Slaney, head of spread betting at GFT Global Markets in London, wrote in an e-mail. ``Further pressure has come from rumors that major shareholders are cutting their stakes.''
