subject: Spread Betting News - Equity markets trade lower as investor concerns weigh [print this page] Spread Betting News - Equity markets trade lower as investor concerns weigh
Giles Watts, Head of Equities for spread betting and CFD trading provider City Index (http://www.cityindex.co.uk/) gives a daily report on the financial markets. See his latest report on the equity markets here.
"Equity markets traded lower as investors were unable to shrug off oil prices concerns and worries over continuing tensions in Libya. The UK's F100 traded down to the week's low of 5928 before recovering by mid afternoon. The Dax continued its negative week shedding a further 15 points, whilst across the water the Dow struggled to edge into the blue.
Heavyweight insurer Prudential topped the FTSE leader board after posting bumper numbers that beat consensus and excited investors as they promised to return cash to shareholders; shares traded above 750, the highest level in over two years. Investors in Rolls Royce also had reason to cheer as the Aerospace giant announced a deal to bid for engine maker Tognum in conjunction with Daimler , a well received deal saw the share price add 16p to trade up to 617.
Investor's optimism was curtailed however by the continuing tensions in Libya and a re-emergence of sovereign debt issues. Crude oil continued to trade above $105 a barrel as investors remained unnerved by the strength in oil with the omnipotent fear that a worsening of condition could see oil spike up toward $120. As if to cement the bearish tone of the day, sovereign debt issues returned to the fore as Portuguese bond yields on the two year bonds reached their highest level for since the Euros inception, such price action has reignited fears that Portugal could yet have to request for international assistance.
Debt and geo-political tensions aside investors were in reflective mood as today marked the two anniversary March 2009 lows on the S&P, marking the start of one the most impressive rallies in years. Given the macro background of sluggish economic growth, sovereign debt issues and rising commodity prices nervy investors would be forgiven for suggesting such a rally in these conditions is due some correction. The more sanguine amongst us may suggest that given such a challenging background equities remain the asset class of choice, especially in an improving economic climate."
To see more market analysis from City Index, visit: http://www.cityindex.co.uk/market-analysis/
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