Optimism fails to recede from markets once again this morning, with European risk assets buoyed by investors’ belief that the US Fed stands ready to print should macroeconomic headwinds require.

This synthetic cornering of cash into higher-yielding assets by governmental institutions tends to attract much criticism, as the use of leverage by participants in search of a greater return can potentially create again those asset bubbles that require government support when burst.

But if the spread trading markets back the Fed, and capital not yet employed participates, then the start to this year seen so far might be just the beginning and become viewed as cheap in hindsight.

Gold continued in strength last night, trading higher than $1,710 per oz., and light crude toyed with $100 per barrel once again, with the dollar falling in sympathy.

Eyes will turn to US core durable goods orders and unemployment claims due for release at 13.30 GMT, and new home sales at 15.00.

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European spread trading markets respond to a largely positive overnight session from Asia this morning, with the MSCI Asia index trading up 1.4% against a better than expected trade balance report from China.

Concern that China’s economy might slow more than forecasted had the effect of subduing buyers of metals and basic material stocks in recent weeks, increasing volatility and soaking up liquidity to markets braced for significant stress should sellers’ fears be realised.

Gold remains in focus as dollar weakness seen yesterday and today fails to lift the precious metal above last week’s highs, adding a little strength to the bears’ case for selling against a potentially unwinding market.

Fixed-interest will be of particular interest today in light of investors pushing yields negative on German 6-month notes for the first time in Eurozone history yesterday, as ultra-liquid and short-term government paper illustrates the market’s desperation for a credible safe haven.

Bunds remain well bid this morning, yielding 1.85%.

Article by Spreadex.

CFDs, Forex and Financial Spread Trading carry a high level of risk to your capital and can result in losses larger than your initial stake/deposit. These forms of trading may not be suitable for everyone so please ensure you fully understand the risks involved. Where necessary, seek independent financial advice.

This BillionforGovernor.com is only intended for those persons of 18 years of age or older.

Petrofac are one of the top risers this morning as an agreement with oil and gas project management firm Schlumberger, empowering them to increase their scale of project bids, has impressed investors.

Balfour Beatty failed any significant early morning gain despite winning a 5 year extension to their contract with National Grid to maintain and upgrade the UK’s electricity network.

Spread trading Investors are eagerly awaiting the outcome of the French debt auction this morning for an indication of any further advancements in both bonds and equities alike.

As was the case with Germany yesterday all eyes will be on these sovereign debt auctions over this first quarter as there is substantial refinancing required from the troubled euro nations.

Article by Spreadex.

CFDs, Forex and Financial Spread Trading carry a high level of risk to your capital and can result in losses larger than your initial stake/deposit. These forms of trading may not be suitable for everyone so please ensure you fully understand the risks involved. Where necessary, seek independent financial advice.

BillionforGovernor.com is only intended for those persons of 18 years of age or older.

Shares spread trading markets today have somewhat stabilised against yesterday’s heavy selling, with metals and energies gently inflating against a weakening dollar.

The outlook, however, remains deflationary. Gold, investors’ preferred inflationary hedge, closed in proximity to its 200 day moving average, suggesting a fundamental shift to the metal’s recent popularity beyond normalised volatility.

Risk assets, though, might offer more than the market is currently willing to pay for them.

In times of market stress, risk appetite dwindles and time horizons shorten, potentially undervaluing assets by replacing participants’ diligent valuation with short-term anxiety and margin calls.

This binary pricing mechanism could provide those with longer-dated time horizons an opportunity to earn not only a risk premium but an anxiety premium, too.

Article by Spreadex.

CFDs, Forex and Financial Spread Trading carry a high level of risk to your capital and can result in losses larger than your initial stake/deposit. These forms of trading may not be suitable for everyone so please ensure you fully understand the risks involved. Where necessary, seek independent financial advice.

BillionforGovernor.com is only intended for those persons of 18 years of age or older.

European spread trading markets awake to a generally negative bias to risk assets this morning, with Moody’s criticising the actions of Eurozone leaders last week to the on-going debt crisis as providing no new solutions.

Early trading today reflects this sentiment, as inflationary concerns are so far replaced with that of growth; cash-settled gold contracts trade some $30 dollars lower in sympathy of a darkening outlook.

Financials and basic materials weigh on equity indices so far, noting real concerns to output from China and further scrutiny to European banks’ creditworthiness.

With a distinct lack of economic figures published today, the FTSE 100 will turn to Mervyn King’s words for volatility.

Article by Spreadex.

CFDs, Forex and Financial Spread Trading carry a high level of risk to your capital and can result in losses larger than your initial stake/deposit. These forms of trading may not be suitable for everyone so please ensure you fully understand the risks involved. Where necessary, seek independent financial advice.

BillionforGovernor.com is only intended for those persons of 18 years of age or older.

Once again, red is dominating equity traders’ screens with the FTSE -20 at 5290 ahead of Chancellor Osborne’s Autumn Statement.

There are twice as many blue chip fallers as risers.

Sentiment is waning once again, as many investors expect him to announce that Britain is getting sucked further into the European vortex and a recession seems increasingly likely.

Basic materials are the worst performing sector, with Rio Tinto and Xstrata both down over 1%. However, these are not irrecoverable losses.

If European Finance Ministers can agree on details of the bailout fund though, we could see a reversal, and would expect the FTSE 100 to rally towards a resistance of 5360.

Article by Spreadex.

CFDs, Forex and Financial Spread Trading carry a high level of risk to your capital and can result in losses larger than your initial stake/deposit. These forms of trading may not be suitable for everyone so please ensure you fully understand the risks involved. Where necessary, seek independent financial advice.

This BillionforGovernor.com is only intended for those persons of 18 years of age or older.