London, Greater London -- (SBWIRE) -- 10/21/2010 -- Joshua Raymond, Market Strategist at financial spread betting provider City Index (http://www.cityindex.co.uk) commented:
“Investors picked up stocks from their lows on Friday after a surprisingly weak nonfarm and private payrolls number raised optimism that the Fed will be forced to act and announce a second round of quantitative easing soon.
Non Farm Payrolls indicated a loss of 95,000 jobs whilst Private Payrolls grew 65,000 both badly missing market expectations.
After a knee jerk reaction sell off, traders quickly attuned themselves to the idea that this could seal a second round of stimulus by the Fed and bought into equities. .
On the currency front, we saw the dollar weaken as the jobs data serves a bit of a double whammy to the US currency as it heightens both the weakening US recovery and the potential for more cash creation. Moreover, all eyes will be on Japan and the G7/IMF this weekend after the dollar/yen traded below the 82 Yen level for the first time since 1995.
Seeing the resilience of financial markets despite what is a poor jobs number, one would hope that QE2 is just around the corner or there is a potential for a strong sell off given how far Indices have rallied since the end of the summer.
Investors are looking to the Fed to give a much needed injection to the struggling US economy and let’s hope the Fed does not disappoint.
The miners were the main support to Indices, with the sector rallying 1.3% as commodity prices surged. It is hard to find a miner not in the top 10 rising equities by percentage on the FTSE 100 today with Lonmin, Xstrata and Anglo American shares all rallying strongly. Weakness in the banking sector and energy firms however ensured that Indices continued to trade in negative territory, despite the strength in the miners.”
Learn more about financial spread betting with a free City Index seminar. See a list of upcoming workshops at http://www.cityindex.co.uk/learn-to-trade/seminars.aspx.
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, financial 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.