Commodities Trading

The debt crisis agreement should provide a boost to equity markets and halt Italy’s rising borrowing costs for the time being.

Sarkozy’s appeal for Chinese support in the form of investing in the rescue fund will strengthen the concept but it will be interesting to see how implementation of the finer details unfold given that the banks are not happy with haircut on Greek debt.

Miners were amongst the biggest gainers this morning with Kazakhmys up 5% as 3Q copper production impressed investors and kept it on track to meet full year targets and Rio Tinto were not far behind after reports of good progress in their Mozambique coal project alliance.

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European bourses have had a soft start across the board, with the FTSE 100 down 13 at 5535, the DAX lower by 36 points at 6020 and CAC down 28 at 3191.

As the clock ticks down to the European Summit, doubt is growing in equity markets.

Backbench Tories voiced their discontent over ties to the Eurozone in their demand for a referendum, and although Parliament rejected the move last night, it was enough to make buyers think twice about getting involved ahead of EFSF resolution, even considering some positive corporate news.

BP’s profit fell less than expected and they will be ramping up their strategic divestments, which have been a solid source of capital for fines thus far. It leads the UK gainers, up 2.94% at 451.

Chipmaker ARM Holdings also reported better than expected sales and revenue, but some consider their heavy reliance on Apple, which failed to impress with last week’s results, an albatross around their neck.

ICAP, Bunzl and Fresnillo lead the fallers.

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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.

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Despite last week’s disappointing GDP report from China, today’s PMI manufacturing reading of 51.1 signifies that the eastern giant is still expanding, driving metals futures into higher trading, with LME Copper spreads trading up nearly 3%.

The report has helped European bourses keep their heads above water, the FTSE is up 12 points at 5500 and the CAC up20 at 3190, but downward pressure comes from weak French PMI figures and further delays from the EU Summit.

Basic resources are far and away the big winners this morning, with Essar Energy +5.43%, and Antofagasta and Kazakhmys also both up over 3.5%.

There’s little conviction to the buying yet today as volumes remain suppressed, but a strong reading on Eurozone Industrial Orders could galvanize bourses.

Spreadex are calling the Dow to open up 19 points at 11827 and the S&P to open up 1 at 2339.75.

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.

The trend turned sour for equities yesterday afternoon and has only been exacerbated by reports of the slowest growth in China for 2 years, as their GDP only grew by 9.1%.

European indices are still heading south this morning, with the FTSE spreads down 78 points at 5358 which is well below the technical support level at 5400, so we are clearly bearish ahead of a European decision on Friday. The DAX is down 106 points at 5753 and CAC is down 67 at 3099.

Even after Whitbread boldly increased their dividend by 56% to 17.5p they are still grasping for gains today, and are currently the only riser on the FTSE 100. Despite a tough underlying consumer environment, they see consumers willing to spend on value goods. Miners are the biggest losers with Xstrata and Rio Tinto weighing heaviest on the index.

I can’t stress the significance of today’s corporate earnings from the US enough. Tech, banking and consumer staple stocks are all reporting (Intel, Apple, Goldman Sachs, Bank of America, Johnson & Johnson and Coca-Cola just to name a few) and there are some big expectations for signals of a turnaround.

Other than Apple, they have all suffered further losses the last 2 months and it may take a miracle, especially for the banks, to regain investor confidence.

Spreadex are calling the DOW to open down by 66 at 11336. However, this could easily change by 50 pts either way depending on how premarket earnings results look. We are calling the S&P to open down 2.5 points at 1192.

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.

European bourses are pretty quiet ahead of the German vote on the expansion of the EU rescue fund. The FTSE is down 19 points at 5196, the DAX down 22 at 5557 and the CAC down 7 at 2990.

Basic materials stocks continue their lacklustre performance this morning as a strengthening dollar has pushed commodity prices down significantly in the last few weeks. The knock-on effect has hit Xstrata (-16 at 862) Rio Tinto (-52 at 3004) and Antofagasta (-16 at 974), even though Gold and Silver contracts are up 0.5% and 2.4% respectively.

It is not enough of a reverse to help the miners out though, as they are still trading well below significant averages, and Copper has continued to drop, down 1.2% today.

Since yesterday’s risk-off scenario has spilled over to today’s session, it would take some monumentally good reports from the US this afternoon to reverse the trend. Recent housing data has been poor though, and analysts remain gloomy about today’s pending home sales, calling a -2.1% change.

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.

Jean Claude Trichet hinted yesterday towards a more dovish approach to European monetary policy, confirming the EU Political leaders’ doubts over the resilience of economic growth within the Eurozone.

Inflation fears have started to resurface after taking a backseat over the last few weeks. With the US holding rates at record lows for the next two years, along with Trichet’s announcement yesterday, inflation pressures will only become more provident.

Employment data in the states this afternoon could prove quite an influential figure today for the commodities spreads, with a fragile global economic outlook looking for a much needed boost.

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.