Mixed feelings about China’s manufacturing data has led to a slow start this morning in financial spread trading markets.

Although the official manufacturing figure improved slightly for a second consecutive month, some observers now expect the central bank to hold off any further stimulus for the economy.

At present the spread trading markets need a boost from somewhere.

Weak US data yesterday and Greece’s troubles hitting the headlines once again seems to have prevented the Federal Reserve’s extension of near zero interest rates through to the end of 2014 from having it’s full effects on equities.

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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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After the dozy holiday fortnight, the dollar re-established itself as the currency least likely to collapse.

Forex spread trading investors unwilling to put their faith in the euro sought the safety of the dollar or the Japanese yen. There was little to choose between the two.

There also seemed to be a change of heart about the implications of stronger US economic data.

In recent months there has been a tendency to treat positive figures as dollar-negative. Simply put, if the American economy is doing well, there is no need to worry about the global economy and therefore no need to seek the shelter of the safe-haven currencies.

When Friday’s employment report showed a 200k increase in non-farm payrolls, together with a fall in the unemployment rate from 8.7% to 8.5%, investors’ reaction was to buy the dollar, just as they would have done in the olden days.

By MoneyCorp.

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European leaders failed to agree to change the EU’s treaties last night, causing a new inter-governmental treaty to be negotiated, but only among 23 member states.

Getting backing from all 27 countries however was a far fetched idea, especially with Britain’s stance.

Although an agreement has started, it is still unclear how these new fiscal rules will be enforced without the backing of all 27 member states.

Some short term efforts have been made to send some reassurance to the index spread trading markets, with 200 Billion euro’s in new EU Funding being sent to the IMF to help countries struggling to deal with the growing lack of liquidity in bond markets.

So it seems we find ourselves in a very familiar situation regarding the EU, one of uncertainty.

Everyone’s attention today will be on developments coming out of Brussels as leaders battle on towards an agreement.

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.

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The Loonie followed a path midway between the antipodean dollars and the American one, gaining the best part of two cents against sterling on the week.

It found useful support on Wednesday, after the figures for economic growth in the third quarter came out. Gross domestic product expanded by an annualised 3.5% in Q3, equivalent to quarter-on-quarter growth of nearly 0.9%.

It meant that Canada’s economy grew at more than four times the pace of Euroland (0.2%) and appreciably faster than Britain (0.5%) and the States (0.6%).

Friday’s employment numbers were less helpful. Although the number of people in full-time jobs went up by 34.6k, the number of part-time jobs was down by -53.3k in November. The net loss of nearly 19k jobs was wildly adrift from the expected 20k increase and pushed the unemployment rate up from 7.3% to 7.4%.

The news didn’t particularly hurt the Canadian dollar spreads, but brought to an end the uptrend it had enjoyed for the previous four days.

By MoneyCorp.

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.

The FTSE 100 has opened +20 at 5572 tracking cautious Asian gains overnight as markets digest news from Italy concerning a new 30 billion euro package to shore up Italy’s public finances.

Banks have started the session positively, emulating the Japanese banking stocks overnight.

Positive results over TUI Travel came in the form of another year of growth as the holiday operator announced an 18% increase in operating profits.

Such profits defy not only European debt issues but also global political hitches specifically concerning North Africa.

Diversification within developing countries was hailed as a staple to the firm’s success.

However, investors remain cautious ahead of this week’s scale, and volume, of European meetings the first beginning with a Franco-German summit in Paris today.

The markets may be expecting a further European augmentation to Italy’s austerity measures to cement a more optimistic view over the European rescue package.

Christmas may well come early for global markets after this week’s meetings.

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.