What's New | GFT Global Markets UK

UK's FTSE 100 called to open 80 points higher on Monday

Fri, 05 Sep 2008 17:08:06 -0400

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.

Canadian Dollar Advances in Forex Trading

Fri, 05 Sep 2008 10:32:07 -0400

Spread bets and CFDs on currenciesSpread 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.

World Stock Indices Drop on U.S. Jobs Data

Fri, 05 Sep 2008 10:26:33 -0400

U.S. economy affects global stock marketsSpread 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.

U.S. Computer Maker Dell Wants to Sell Factories

Fri, 05 Sep 2008 10:19:28 -0400

Spread betting and contracts for differences on individual equitiesSpread 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.

Oil Prices Pare Losses After U.S. Jobs Data

Fri, 05 Sep 2008 10:13:05 -0400

U.S. dollar drops in forex trading on employment data, oil prices gain in commodities tradingAfter sliding dramatically earlier today, oil prices are paring losses right now. Oil prices are making a turnaround attempt as the U.S. dollar drops in forex trading on the dismal news about unemployment. Indeed, the dismal employment news is one of the main factors affecting most markets today, and causing problems for the U.S. dollar.

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."

Financial Spread Betting Strategy: Gold Prices

Fri, 05 Sep 2008 09:50:43 -0400

Gold turns around after U.S. jobs dataFinancial 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.

U.S. Treasuries Advance on Jobs Data

Fri, 05 Sep 2008 09:42:54 -0400

Spread bets and CFDs on the U.S. bond marketAs 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.

Japanese Stock Indices Retreat

Thu, 04 Sep 2008 10:38:12 -0400

Spread bets and CFDs on Japanese stocksSpread 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.

U.S. Stock Market Drops on Disappointing Data

Thu, 04 Sep 2008 10:33:21 -0400

Spread betting and contracts for differences on U.S. stocksSpread 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.

Sugar Prices and the U.S. Dollar

Thu, 04 Sep 2008 10:28:46 -0400

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.

Financial Spread Betting Strategy: Oil Prices

Thu, 04 Sep 2008 09:03:41 -0400

Oil prices head up slightlySpread 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.

Currency CFDs: Japanese Yen

Thu, 04 Sep 2008 08:56:37 -0400

Japanese yen gains in forex tradingOne 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.

UK rate decision

Thu, 04 Sep 2008 08:40:41 -0400

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.

Bank of England, European Central Bank Stay the Course

Thu, 04 Sep 2008 08:31:36 -0400

Spread bets and CFDs on interest ratesPolicymakers 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.

Spread Betting Tips: Average Directional Index

Wed, 03 Sep 2008 10:54:46 -0400

Average Directional Index can help you evaluate trendsOne 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.

What's New | GFT Global Markets UK

UK's FTSE 100 called to open 80 points higher on Monday

See Also

Canadian Dollar Advances in Forex Trading

See Also

World Stock Indices Drop on U.S. Jobs Data

See Also

U.S. Computer Maker Dell Wants to Sell Factories

See Also

Oil Prices Pare Losses After U.S. Jobs Data

See Also

Financial Spread Betting Strategy: Gold Prices

See Also

U.S. Treasuries Advance on Jobs Data

See Also

Japanese Stock Indices Retreat

See Also

U.S. Stock Market Drops on Disappointing Data

See Also

Sugar Prices and the U.S. Dollar

See Also

Financial Spread Betting Strategy: Oil Prices

See Also

Currency CFDs: Japanese Yen

See Also

UK rate decision

See Also

Bank of England, European Central Bank Stay the Course

See Also

Spread Betting Tips: Average Directional Index

See Also