Global Equity pare gains as solid employment data fails to impress – City Index

Global Equity pare gains as solid employment data fails to impress City Index

Giles Watts, Head of Equities at City Index, provides insight into the market activity that shaped spread betting and CFD trading on March 4th.

"Global equity markets drifted despite solid employment numbers from the US suggesting there is life in the US labour market yet.

As indices traded off their highs, investors seemed unimpressed by a fall in the unemployment rate for the third consecutive month. Much anticipation surrounded the non-farm numbers after yesterday's positive Jobless Claims data, and although the numbers failed to beat expectations, the fundamentals pointed to an improving US economy as payrolls grew at the fastest rate since last May. Investors seem reassured if a little underwhelmed as yesterday's solid move suggested decent employment numbers had already been priced in, hence the afternoon retreat.

Adding to the retreathas been investor's locking in their equity gains from the last two days just in case the situation in Libya and the Middle East escalates over the weekend when the markets are shut. Notable increases in the prices of both Brent and Nymex crude oil has also weighed on equities in the afternoons session.

Investors in European insurers had reason to cheer as Aviva, Standard Life and Prudential all featured on the FTSE leader board as upgrades from a host of investment banks boosted sentiment in the sector. The positive sentiment didn't extend to the banking sector however, which saw slight reversals after the last two days of gains; such risk sensitive stocks remain volatile as investors realign their positions heading into the weekend.

Although concern over geopolitical issues seems to have abated, the possibility of escalation over the weekend will check investors from becoming too bullish. The volatile situation in Libya and the continuing circulation of rumours of disruption elsewhere in the region will keep investors on their toes. Many oil experts have suggested that WTI could reach $110 dollars a barrel if it consolidates above the $100 mark, and such a move would surely be detrimental to global equity markets.

Despite equity markets actually posting gains since mid February, at the height of the Egyptian crisis, should the tensions spread to more vital oil producing nations such as Saudi Arabia, traders could expect to see a far more dramatic correction from a market spooked by the spiralling oil prices.

Keep your finger on the pulse of the markets wherever you are with multi award-winning mobile trading from City Index. Visit http://www.cityindex.co.uk/trading-platform/ for details.

Spread betting and CFD trading are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.

About City Index:

Today more and more individual traders are discovering the benefits of derivatives, and many of them are discovering them through a City Index trading platform.

As a group, we transact in excess of 1.5 million trades every month for individuals in over 50 countries worldwide. We provide access to a wide range of instruments including margined foreign exchange,CFD trading and, in the UK, spread betting.

We constantly look to widen the range of assets we offer, improve the performance of our platforms and expand the range of services we provide. The result is that our customers benefit from innovative trading tools with transparent pricing, competitive spreads, and a high standard of customer service and support. For more information, visit http://www.cityindex.co.uk/.

POST COMMENT

PA Unemployment Benefits Different employments of a locksmith services provider How to Choose the Employment and Labor Lawyer in St. Louis, Missouri Why You Should Take Short Courses in the Time of Unemployment Summer Camp Employment – It Could Launch Your Career Jobless Claims, Unemployment and the Highest-Employing Industries in 2011 Employment Disputes – How a Solicitor can Help You Why should you work while collecting the unemployment benefits? MDunemployment Aboriginal Employment Service For Canadian Companies - Symbiotic Group National Unemployment, Bankruptcy and Arizona's State of Peril Paying for College: Using Employment Prospects to Drive Decisions Employment Agencies Halifax