Trading in Asia last night was relatively flat as financial spread trading investors eye up the US Non-Farms payrolls coming out this afternoon.

However the UK economy is set for a modest contraction this year according to the national institute for economic and social research, as it downgraded its forecast for 2012 to -0.1% growth for 2012.

If accurate the worries of a double dip recession will soon become reality as the UK struggles to maintain growth among a flaky at best European economy.

All eyes will be on the US job figures this afternoon, with any positive figure helping push this current rally even higher. The economy is steadily gaining traction, however, this should not be taken for granted as it seems the hill which is Europe could suddenly get a lot steeper.

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Risk assets seem to have paused for breath this morning after economic data from China and the US provided steady gains yesterday.

There may also be caution ahead of this week’s US jobless claims as the figure will provide greater insight for estimates on the non-farms tomorrow.

Deutsche Bank’s heavy drop in profits highlights the challenges European banks face as they attempt to maintain shareholder value whilst being mandated to increase capital reserves to withstand Europe’s debt troubles.

The spread trading markets seem to have shrugged off this bleak news as expectations already priced in the fall in profits. This market behaviour seems to be typical of late as there are few things to shock investors due to expectations being lowered so much.

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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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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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European banks are getting ready to tap into the ECBs Emergency Funding Scheme for a second time, highlighting the strain of the lack of liquidity in the banking sector.

The emergency funding take-up could reach 1tn Euros, and possibly more if the spread trading markets take a turn for the worse.

Merkel can celebrate slightly as 25 out of the 27 EU States have signed up to her stricter fiscal discipline plan yesterday.

However, the debate over Greece is still well under way as Sarkozy rejects the latest Greek budget proposal, although progress has been made according to Lucas Papademos.

Stronger industrial numbers in Japan has boosted the Asian markets last night, giving rise to a higher open in Europe this morning.

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

Yet further European worries have hit investor sentiment with shares lower across the board this morning.

No Greek restructuring deal has reduced spread trading investors’ optimism, acting as one of the main catalysts for today’s sell off.

Asian markets put out a downbeat performance last night after returning from the Chinese new year with investors showing disappointment that the Chinese authorities have not carried out their monetary easing in the manner in which some people had expected.

European leaders are meeting in Brussels today to discuss Greece in further detail. Let’s hope some agreement is made so at least some form of certainty can take hold.

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.

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.

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.