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CFDs: Risk-Off Attitude Sees Commodities Prices Plunge

17 May 2012, 3:09 pm

Commodities fell on Friday, notching the biggest two-week loss of 2012 after top US bank JPMorgan Chase & Co shocked the market by reporting huge trading losses, fuelling risk aversion among investors already worried about the global economy.

JPMorgan’s trading loss of at least $2 billion from a failed hedging strategy hammered financial stocks and also sparked more long liquidation in markets from copper to oil by investors already worried about Greece’s political woes and China’s slowing growth.

Looking at the City Index charts, copper slid for a second week after top metals buyer China reported a slump in industrial production in April.

The data, which also revealed investments in China slowing to near a decade-low, showed the No. 2 economy surprisingly vulnerable to the global economic slowdown and credit crunch at home.

Gold fell almost 1 percent on Friday as fears over a worsening European debt crisis and sharp losses in equities and commodities sent the precious metal to its biggest weekly decline this year. Brokers like CMC offer a gold market and brokers like Inter Trader and FinancialSpreads.com let you trade a number of commodities like gold, copper and crude 24 hours a day (excluding weekends).

Political uncertainty in Greece and a change of leadership in France last week had investors doubting whether Europe would come through with the billions of euros needed to bail out its troubled economies. Spanish bank worries also added to debt fears.

For the week, gold notched a 3.7 percent loss, the worst performance since the week of December 18 last year when it tumbled nearly 7 percent. For more details also see www.cfds-online.com.

Although last year gold tended to benefit from worries over the health of the Eurozone, it has reverted to trading more in line with assets seen as higher risk as the US dollar and US government bonds have taken over as the havens of choice.

The above is a review of the commodities market for 7 May 12 to 11 May 12

Contracts for differences (CFD) and Spread Trading carry a high level of risk to your capital with the possibility of losing more than your initial investment and may not be suitable for all investors. Ensure you fully understand the risks involved and seek independent advice if necessary.

Filed under CFD Commodities Trading, CFD Crude Oil Trading, CFD Gold Trading, CFD Share Trading, CFD Trading, Spread Trading.
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Forex Trading: Political Uncertainty in Greece Sees EUR/USD Fall 2.4%

16 May 2012, 5:16 pm

In CFD trading, the euro slid to a 3.5 month low in volatile trade on Friday as political uncertainty in Greece and hefty losses disclosed by US bank JPMorgan Chase spurred risk aversion.

The euro has dropped against the dollar in eight of 10 sessions for a cumulative 2.4% decline, hit by the turmoil in Greece. Not that you can trade the forex markets with Financial Spreads and City Index.

Inconclusive election results last Sunday threw the country into political disarray and raised the risk that it could exit the Eurozone and the European Union.

Greek Socialist party leader Evangelos Venizelos on Friday said he was unable to form a government, sending the country hurtling toward a new vote.

Recent economic data has pointed to recession across Europe and could cause the European Central Bank to take action sooner rather than later, compared with the United States, which is still seeing growth, although at a slower rate.

Mounting concerns about the Spanish banking sector and the government’s ability to check its budget deficit also weighed on the euro and left investors fretting about whether the debt crisis will ensnare Spain, the Eurozone’s fourth-largest economy.

Even before the news on Greek politics on Friday, the euro and growth-linked currencies were under pressure as investors shunned risk after JPMorgan Chase & Co late on Thursday said it suffered a trading loss of at least $2 billion from a failed hedging strategy.

Data showing that US consumer confidence hit a more than four-year high in early May gave a brief boost to the dollar against the yen, though that support was fleeting.

US consumer sentiment rose as Americans remained upbeat about the job market, a survey released on Friday showed.

The Thomson Reuters/University of Michigan’s preliminary May reading on the overall index on consumer sentiment improved to 77.8 from 76.4 in April, topping forecasts for 76.2. It was the highest level since January 2008.

Separate US data showed producer prices unexpectedly fell in April, a sign of easing inflation pressures that could give the Federal Reserve more room to help the economy should growth weaken.

The Labour Department said on Friday its seasonally adjusted producer price index dropped 0.2% last month. That was the first drop of the year and the biggest decline since October.

The above is a review of the forex market for 07/0/12 to 11/05/12.

Contracts for differences (CFD) and Spread Trading carry a high level of risk to your capital with the possibility of losing more than your initial investment and may not be suitable for all investors. Ensure you fully understand the risks involved and seek independent advice if necessary.

Filed under CFD FX Trading, CFD Share Trading, CFD Share Trading News, CFD Trading, Spread Trading.
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Bearish Trend Sees Gold CFDs Fall Below 1630 Support Level

15 May 2012, 3:28 pm

Weakness drags markets lower to test support levels

The start of the week has seen sharp declines for the UK FTSE 100, with the US Dow Futures pointing sharply lower.

This is in line with bearish expectations as the stock indices had turned bearish with technical indicators confirming these aspects since the March highs.

Since we have seen lower high and lower low formations, the trend has been clearly to the downside.

As the decline continues, we are approaching some key support levels which could help lift the CFD trading markets, albeit briefly, or at least until we can see trend reversals with higher lows and higher highs.

Gold has broken below support levels with further lows expected.


FTSE 100 heading for 5407 support

So far the FTSE 100 has managed to stay on track to test lower price targets. We have seen the breakdown from the resistance of 6000, then from a secondary high of 5820. Finally the index fell through 5580 and is now set to challenge the 5407 level.

As long as the trend remains bearish there is still the possibility of seeing even lower levels along the way.

5288 – 5271 becomes the next objective once we see a continuation of the trend.

Along the way traders can expect a counter trend rally, with resistance at 5640 – 5685 on the upside. The rallies on the upside are likely to offer shorting opportunities along the way.


Dow Jones heading for 12700

The 12700 level provided a good platform for the Dow Jones to rally in March and April. Currently the index is heading lower to retest this level again for the third time.

If the support level fails to hold then this could open the door to see the Dow Jones reach for 12533, followed by 12285. Here the trend has been bearish and failing to break above 13270 has clearly given the bears the chance to take control and bring the index lower.

However, there exists a possibility that the index could become range bound between 12700 – 13000 if we see a good reaction at the 12700 level. This week should provide an answer.


Gold trading below $1,585 level

In gold CFD trading, prices have not had a chance to rebound after falling through the $1,630 support level.

The dominant bearish trend has really brought this commodity down sharply.

It appears that gold is likely to struggle now above $1,630 as this is likely to become a resistance.

First it will need to climb back above $1,585 to prove that it has a chance of any higher moves.

Most likely, as long as the trend continues to the downside, we could see gold fall as low as $1,530 this week.

On two timeframes, including daily and weekly, this metal has a fair amount of work to do to turn this trend around.

Contracts for differences (CFD) and Spread Trading carry a high level of risk to your capital with the possibility of losing more than your initial investment and may not be suitable for all investors. Ensure you fully understand the risks involved and seek independent advice if necessary.

Market News by Joshua Raymond, Chief Market Strategist, CityIndex.

City Index is a CFD and Spread Trading provider which is authorised and regulated by the Financial Services Authority (no. 113942).

This material should not be construed in any circumstances as a recommendation or offer to sell or recommendation or solicitation of any offer to buy any security or other financial instrument by City Index Limited (City Index), nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. The material is not a personal recommendation and you should seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks if you are at all unsure, as well as confirming the legal, tax and accounting characteristics and consequences of any transaction.

City Index does not warrant or represent (expressly or impliedly) that the material is accurate, complete, not misleading, or fit for the purpose which it is intended and it should not be relied upon as such. City Index may in the ordinary course of business hold positions in any securities listed above.

Filed under CFD Commodities Trading, CFD Gold Trading, CFD Share Trading, CFD Share Trading News, CFD Stock Market Trading, CFD Trading, Spread Trading.
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CFD Trading: Profit Taking Sees Natural Gas Futures Fall Despite Positive Reports

11 May 2012, 2:36 pm

In CFD trading Gas prices ended lower last Friday as moderate US weather forecasts and poor economic data triggered profit-taking after recent gains despite another supportive weekly inventory report.

The US Energy Information Administration report showed total domestic gas inventories rose last week by 28 billion cubic feet to 2.576 trillion cubic feet. Traders and analysts had expected a 31 bcf gain.

The inventory build was light relative to expectations and sharply trimmed the surplus to last year by 32 bcf to 840 bcf, or 48%.

It also sliced 51 bcf from the excess to the five-year average, reducing the total to 857 bcf, or 50%.

While the inventory surplus to last year has dropped 5% from the highs in late March, traders said the market was still a long way from eliminating an oversupply that could drive prices to new lows this year. Note that you can trade Gas Futures with City Index and CMC Markets.

Stocks are still at record highs for this time and concerns persist that the inventory glut will force prices lower this spring.

This comes as seasonal weather demand fades and pressure prices again this summer if storage caverns fill up and force more gas into an over-supplied market.

If weekly stock builds through October match the five-year average, inventories would top out at 4.532 tcf, 10.5% over peak capacity estimates of about 4.1 tcf.

Early injection estimates for this week’s EIA report range from 25 to 70 bcf versus last year’s adjusted build of 71 bcf and the five-year average increase for that week of 84 bcf.

The above is a review of the natural gas market for 30 April 2012 to 4 May 2012.

Contracts for differences (CFD) and Spread Trading carry a high level of risk to your capital with the possibility of losing more than your initial investment and may not be suitable for all investors. Ensure you fully understand the risks involved and seek independent advice if necessary.

Filed under CFD Commodities Trading, CFD Trading, Spread Trading.
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GBP/EUR Forex CFDs Rallies on Spanish Credit Downgrade

4 May 2012, 12:16 pm

The euro touched its lowest level against the pound in three and a half years. That coincided roughly with Sterling’s trade-weighted index reaching its highest level since August 2009.

The two events were consistent with a soggy week for the euro and a further improvement in forex CFD trading investors’ perception of the pound.

The monthly (provisional) Euroland purchasing managers’ index round showed shrinkage in every sector, in every country, apart from German services which managed a score of 52.6.

All the others were below the boom/bust dividing line at 50. Eurozone consumer and industrial confidence were both down by two points, at -19.9 and -9.0 respectively.

The Marmite on euro’s cake was a downgrade of Spain’s credit rating.

Unusually, investors disregarded a second quarterly fall in UK economic output, even though it meant a return to technical recession.

It seemed they preferred to focus on more recent – and more positive – data.

 
CFDs and spread trading are leveraged products, they involve a high level of risk to your funds and you can lose more than your stake. Ensure that they match your investment needs as they may not be suitable for all classes of investor. Ensure that you only speculate with money that you can afford to lose. Before trading, please ensure that you are fully aware of the risks that are involved and if appropriate request independent financial advice.

FX Trading Update by www.moneycorp.com where you can open a free, no obligation Trading Facility.

Filed under CFD FX Trading, CFD Trading, Spread Trading.
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Index CFDs: FTSE 100 Looks to Trade Lower After Breaking Support

23 April 2012, 3:02 pm

Weakness in the markets at the start of this week has seen stock indices breach support levels.

As highlighted in the previous report, there are some worrying signs which are apparent and signal the potential for declines to drag the markets lower this week.

If support levels fail to hold the markets, the bears are likely to enjoy taking the indices much lower and there could be falls greater than -4% lined up. It would require a snap back turnaround to lift the mood and help take the indices back into bullish territory.

Gold CFDs are also seeing the brunt of a sell-off as the metal falls below its key $1630 level. Lower prices are on the cards.

FTSE 100 fails to hold 5690 support

It is clear that the bearish trend is still dominating the short term trend for the FTSE 100 CFD trading index. Since falling below 5835 the index has seen a minor pullback but has been unable to break above 5820.

Since breaking below the support at 5690 the index has the opportunity to trade lower and test 5580 but also could open the door to see the 5400 level as a lower objective target.

Whilst the index remains in a downtrend on the daily charts, the weekly charts will still need to confirm the bearish trend by forming lower highs and lower lows. Some traders may seek to buy on pullbacks but this could prove to be risky.

Dow Jones creates mixed signals

Whilst the Dow Jones had attempted to break above 13111 last week and also creating mixed bullish and bearish signals, the index looks set to challenge the 12700 support level again.

It will be important for the bears to bring the index down below 12700 to attempt a move for 12545 and potentially 12200 as a lower target.

Much will depend on how sharp the current thrust will be and also how much ground the Dow can cover in a short space of time. The longer it takes to reach support targets, the higher the odds to suggest that we are in line for another attempt at 13111.

Gold stuck within a sideways channel

Already the price of Gold has fallen back to $1630 as the metal failed to get above $1630 last week. The bearish trend and momentum has persisted in bringing prices down with further weakness on the cards.

As long as the metal stays below $1630 and $1715 we may see the price of Gold fall as low as $1575 in the coming weeks.

Unusual as it may look with weak equity prices and fear creeping into the markets the metal is not showing any signs of strength or bullish reversals just yet. Gold will need to get above $1715 to turn bullish.

Contracts for differences (CFD) and Spread Trading carry a high level of risk to your capital with the possibility of losing more than your initial investment and may not be suitable for all investors. Ensure you fully understand the risks involved and seek independent advice if necessary.

Market News by Joshua Raymond, Chief Market Strategist, CityIndex.

City Index is a CFD and Spread Trading provider which is authorised and regulated by the Financial Services Authority (no. 113942).

This material should not be construed in any circumstances as a recommendation or offer to sell or recommendation or solicitation of any offer to buy any security or other financial instrument by City Index Limited (City Index), nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. The material is not a personal recommendation and you should seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks if you are at all unsure, as well as confirming the legal, tax and accounting characteristics and consequences of any transaction.

City Index does not warrant or represent (expressly or impliedly) that the material is accurate, complete, not misleading, or fit for the purpose which it is intended and it should not be relied upon as such. City Index may in the ordinary course of business hold positions in any securities listed above.

Filed under CFD Commodities Trading, CFD Gold Trading, CFD Stock Market Trading, CFD Trading, Spread Trading.
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Shares CFD Trading: Positive European Bias Pushes US Stocks Higher

20 April 2012, 4:50 pm

European markets look set to end the week on an upbeat note with better than expected German and UK economic data reinforcing a positive week for both German and UK equity markets.

It’s been a rather different story elsewhere in Europe this week with the Spanish market hitting three year lows this morning, while the Italian market touched its lowest levels this year.

The best performing UK sectors have been split between defensive and cyclical sectors with health care and mining stocks both doing well.

Amongst the best performing stocks has been Lloyds Banking Group after a positive broker reiteration. Joining it near the top of the index is hedge fund Man Group paring some of this week’s rather large losses on the back of position adjustment at the end of the week.

Defensive utility stocks are also over-performing after under-performing yesterday with Severn Trent and United Utilities both doing well.

On the downside, technology stocks have slid back led by chip maker ARM Holdings after a less than positive assessment from Jeffries.

Pump maker Weir Group has also slid back towards six month lows on fears that low gas prices could see a fall-off in demand for its valves and pumps.

US shares CFD trading markets opened higher today helped in no small part by some fairly good earnings numbers, as well as the positive bias carried over by European markets this morning.

Microsoft announced stronger Q3 revenues last night while General Electric reported Q1 operating earnings of $0.34c a share above expectations of $0.33c.

The technology sector continued last night’s positive theme with Honeywell announcing Q1 earnings of $1.04c a share well above expectations of $0.99c and also upgraded their forecasts for the year.

Today’s rally looks like capping off a fairly positive week ahead of next week’s eagerly anticipated FOMC rate meeting, where there is some expectation that the Fed could give clues to further easing measures. This is based on the understanding that there will be a press conference scheduled for after the meeting.

In FX CFD trading, the US dollar has had a pretty poor day today with only the Japanese yen performing worse.

Amongst the better performers, apart from the Scandinavian countries has been the pound which has had a great week, one of its best weeks in a month which was capped off by this morning’s surprisingly good retail sales numbers for March. The numbers showed a 1.8% rise month on month, well above expectations of 0.5%.

Some cynics out there have suggested that this was a result of the panic buying of fuel at the end of the quarter. Even if you strip that out, sales were still up 1.5%, driven by sales of clothing and footwear, and the unusually warm weather.

The surprisingly upbeat numbers have raised expectations of a much more positive Q1 GDP report next week.

The single currency has also had a fairly good day, helped by the better than expected German IFO numbers. However, any upside is likely to be tempered by continued rising Spanish bond yields, after they once again hit 6% on the ten year measure today.

The Swiss franc continues to trade close to its peg against the euro and the lack of any movement here suggests that it can only be a matter of time before the market decides to test the resolve of the Swiss National Bank.

A broadly positive day on equity markets as well as a weaker US dollar usually equates to a positive day on oil prices and that has certainly been the case today.

The increase in German business confidence and strong rebound in UK retail sales has definitely helped sentiment today at the end of a negative week for Brent prices, though WTI prices look set to finish the week in the green.

Copper prices have also bounced back today as speculation about possible Chinese easing measures as well as a rebound in the Chinese stock market.

This rebound does need to be set in the context of the three month lows seen earlier this week, given the worries about growth from some of the European economies.

Gold and silver prices have traded pretty quietly today with gold prices continuing to hold above key trend line support at $1,625 from the 2008 lows at $680.

Note: FX, CFDs and spread trading, are leveraged products. They carry a high level of risk to your capital. It is possible to lose more than your initial investment. These products may not be suitable for all investors, therefore ensure you understand the risks involved. Seek independent advice if necessary. Note that CMC Markets provide an execution-only service. CMC Markets research and charting tools are indicative and provided for information purposes and must not be relied upon as investment advice.

Market News from Michael Hewson, Analyst, CMC Markets.

CMC Markets is authorised and regulated in the UK by the Financial Services Authority, registration no. 173730.

This material should not be construed in any circumstances as a recommendation or offer to sell or recommendation or solicitation of any offer to buy any security or other financial instrument by CMC Markets, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. The material is not a personal recommendation and you should seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks if you are at all unsure, as well as confirming the legal, tax and accounting characteristics and consequences of any transaction.

Filed under CFD Commodities Trading, CFD Crude Oil Trading, CFD FX Trading, CFD Gold Trading, CFD Share Trading, CFD Trading, Spread Trading.
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Strong Employment Data Weakens GBP/AUD Contract for Differences

18 April 2012, 5:10 pm

In FX contract for difference trading, the Australian dollar was the week’s second best performer, with GBP/AUD falling by a cent.

All of that gain came on Thursday morning, following strong employment data.

It was not an especially fruitful week for Australian ecostats. Westpac’s index of consumer confidence fell by -1.6% in April from 96.1 to 94.5 after an even bigger -5.0% fall in March.

There were also back-to-back monthly falls for home loans; -2.5% in February after -1.1%.

Inflation expectations among the public were higher in April at 3.3%, dimming hopes for lower interest rates (the Reserve Bank of Australia pays particular attention to expectations in its policy deliberations).

The corn-curer, however, was the employment report. Instead of rising as expected to 5.3%, unemployment was steady at 5.2%. The even better news was that employers hired a further 44.0k staff in March.

The figure more than offset the previous month’s -15.4k decline and blew away expectations of a 6k increase.

 
CFDs and spread trading are leveraged products, they involve a high level of risk to your funds and you can lose more than your stake. Ensure that they match your investment needs as they may not be suitable for all classes of investor. Ensure that you only speculate with money that you can afford to lose. Before trading, please ensure that you are fully aware of the risks that are involved and if appropriate request independent financial advice.

FX Trading Update by www.moneycorp.com where you can open a free, no obligation Trading Facility.

Filed under CFD FX Trading, CFD Trading, Spread Trading.
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FTSE 100 CFDs to Open Lower amid Rising Spanish Yields

16 April 2012, 12:19 pm

The FTSE 100 was expected to open lower by around 0.2% on Monday at 5640 with 30 minutes to go until the open as the new trading week starts.

CFD trading investors will be paying a dual focus on Spanish bond yields and a raft of corporate earnings out from both Europe and the US this week.

Benchmark 10yr Spanish bond yields hit the feared 6% level at the end of last week.

Any move higher in yields over the coming days is likely to escalate fears of deeper contagion and calls on the ECB to intervene in much of the same fashion as the Central Bank has done previously to cool bond yields from deepening the crisis.

The moves we saw last week to push both Italian and Spanish bond yields higher reflects fear in the market that the culmination of multiple liquidity operations has removed the calmness in the market which had pushed down rising yields.

Now that these liquidity operations have finished, the focus has switched to austerity and Spain missing its deficit targets for the year, and the move higher in yields reflects weaker confidence in Spain’s ability to meet its fiscal mandate.

As with last week, there is a likelihood that equity markets could continue to correlate strongly with any move in bond yields this week, particularly the Spanish bond auctions on Tuesday (12 month and 18 month bills) and Thursday (2014 and 2022 expiry auctions).

We have a raft of corporate earnings this week also and this is where CFD shares trading investors will be able to gauge the impact of slowing global growth on corporate earnings.

There was a rather muted reaction to both Alcoa and JP Morgan’s earnings last week but we are expected to see a more vigorous reaction to earnings from firms such as Goldman Sachs, M&S, Intel, Burberry, Tesco and Morgan Stanley later this week.

Today see’s Citigroup as the headline corporate reporting before the start of trading in the US and as such, their figures is likely to play a role in how UK and European stocks close out the day.

The FTSE 100 suffered is fourth consecutive week of declines last week and you will have to go back as far as May last year for when the FTSE last suffered five straight weeks of declines.

On this front it will be interesting to see whether bargain hunters start to make their move and indeed the FTSE 100 did bounce from support levels of 5580.

It is here where investors will continue to watch for any break lower if the UK Index starts to find more pressure over the coming days. A break below 5580 could open a move to the next support level at 5530.

The FTSE 350 mining sector remains a key focus after the sector recovered somewhat from bargain hunting last week having fallen 20% below levels the sector traded at the start of February.

Given the influence of heavyweight mining stocks on the FTSE 100, a bullish mining sector will be important to help see the FTSE 100 recover this week.

That said, the FTSE 350 mining sector has seen continued pressure from any rally towards its 20 day moving average over the past few months and with the sector having been sold off yet again from its peak last week. This will need to be watched again over the coming days.

From an economic data perspective, we have US retail sales out later this afternoon, with sales expected to slow to 0.3% from 1.1% on a monthly rate. Given the impact of consumer spending on US growth, any fall in sales, which would be a surprise, could escalate US growth concerns following disappointing jobs data earlier in the month.

Contracts for differences (CFD) and Spread Trading carry a high level of risk to your capital with the possibility of losing more than your initial investment and may not be suitable for all investors. Ensure you fully understand the risks involved and seek independent advice if necessary.

Market News by Joshua Raymond, Chief Market Strategist, CityIndex.

City Index is a CFD and Spread Trading provider which is authorised and regulated by the Financial Services Authority (no. 113942).

This material should not be construed in any circumstances as a recommendation or offer to sell or recommendation or solicitation of any offer to buy any security or other financial instrument by City Index Limited (City Index), nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. The material is not a personal recommendation and you should seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks if you are at all unsure, as well as confirming the legal, tax and accounting characteristics and consequences of any transaction.

City Index does not warrant or represent (expressly or impliedly) that the material is accurate, complete, not misleading, or fit for the purpose which it is intended and it should not be relied upon as such. City Index may in the ordinary course of business hold positions in any securities listed above.

Filed under CFD Share Trading, CFD Stock Market Trading, CFD Trading, Spread Trading.
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Mining Sector Rallies on Strong Performance from Alcoa Shares CFDs

12 April 2012, 5:07 pm

European equity markets started the day with a cautious uneven tone but have since moved northwards – at a mixed pace – as dovish comments from the Fed’s Lockhart helped underpin risk appetite.

The diminished demand for periphery debt was exposed as Italy saw its three year borrowing costs rise by more than 1% and the bid to cover ratio down to 1.435 from 1.565 in contrast to the mid-March sale.

The mining sector was in demand following Alcoa’s recent earnings release and, in part, down to some late bargain hunting following Tuesday’s sell off.

The World Bank forecasting a slightly lower growth for 2012 of 8.2% from a previous figure of 8.4% for China has not inhibited shares CFD trading investors and is also helping to support the basic resource sector.

GlaxoSmithKline topped the FTSE blue chip today following an upgrade from Credit Suisse.

Conversely, Man Group was stuck firmly on the bottom rung following Moody’s decision to place the UK asset manager’s debt ratings on review. Investors will be closely watching the company’s next financial results in early May.

The UK saw its trade gap widen by more than expected in the 3 months to February, with the deficit widening to £8.8bn against expectations of £7.7bn as the sharp slowdown in the Eurozone along with weakened domestic demand took its toll.

US markets opened slightly higher despite the fairly mixed economic news.

The US initial jobless claims showed an unexpected rise last week to 380,000 stoking concerns that the American labour market may be losing pace.

The American trade deficit narrowed by a much greater degree than was expected coming in at $46bn in February as a result of an unexpected decline in imports while exports gained to a record $181.2bn.

The pull back in gas prices was credited with US producer prices surprising to the upside, coming in unchanged against a consensus of a rise of 0.3%.

Equity wise, tech-Giant, Google is set to release its earnings after the bell.

Commodity currencies were on the front foot today with the Aussie dollar soaring following news that Australian payrolls had risen by 44,000 in March- almost 7 times that forecast.

The Kiwi also saw strength as the nation showed an expansion in manufacturing.

Reserve currencies took a back seat as the US dollar traded at 6 day lows.

The Japanese Yen was out of favour after the BoJ’s governor stated that the central bank may continue its easing policy.

Reports of an increase in the already robust demand for gold from China have seen the precious metal price climb today. The price may find resistance around $1688 coinciding with the 144 Day MA.

Copper has also seen a bounce today as risk appetite improved but the price per pound still remains below its recent 3 month range.

Oil CFD trading markets have tracked equities and edged higher today owing to a weaker dollar.

Note: FX, CFDs and spread trading, are leveraged products. They carry a high level of risk to your capital. It is possible to lose more than your initial investment. These products may not be suitable for all investors, therefore ensure you understand the risks involved. Seek independent advice if necessary. Note that CMC Markets provide an execution-only service. CMC Markets research and charting tools are indicative and provided for information purposes and must not be relied upon as investment advice.

Market News from Michael Hewson, Analyst, CMC Markets.

CMC Markets is authorised and regulated in the UK by the Financial Services Authority, registration no. 173730.

This material should not be construed in any circumstances as a recommendation or offer to sell or recommendation or solicitation of any offer to buy any security or other financial instrument by CMC Markets, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. The material is not a personal recommendation and you should seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks if you are at all unsure, as well as confirming the legal, tax and accounting characteristics and consequences of any transaction.

Filed under CFD Commodities Trading, CFD Crude Oil Trading, CFD Gold Trading, CFD Share Trading, CFD Trading.
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