London, England -- (SBWIRE) -- 04/25/2011 -- Giles Watts, Equity Analyst of spread betting provider City Index (http://www.cityindex.co.uk/), takes a look at the financial activity shaping the markets on 14th April 2011. Headlines include European markets reversing their midweek gains and Lloyds trading back below 60p.
Wednesday’s rally proved short lived as European markets reversed the mid week gains. Concerns over the strength of yesterday’s rally proved accurate as the FTSE and DAX retraced back to levels seen at the beginning of the week. Mining stocks weighed on the FTSE as concerns over the Chinese economy returned to the fore. China is due to release crucial inflation and GDP data on Friday and ahead of such important numbers, metal prices have retreated as concerns remain that the Chinese government will have to reign in prices to prevent the world’s second biggest economy from overheating. Such concerns also drove oils lower with WTI trading down to $106 a barrel and oils stocks in London shedding yesterday’s gains.
UK investors were further rattled by the announcement from consumer goods group Reckitt Benckiser that the CEO was to retire moths after the departure of the finance director. A highly regarded management team has now lost two vital members, this just served to unsettle investors. Arm Holdings remained centre of attention as it retraced yesterday’s gains, falling 1.5% on concerns that the fallout from Japanese earthquake might dampen demand.
Uncertainty remained around the banking sector as Lloyds traded back below 60p after a Barclays Capital reduced the target on the part state owned bank. Long suffering investors of Lloyds have watched the bank slide from highs of 78 in the third quarter 2010 to today’s new lows for 2011.
Macro data from the US failed to excite investors as jobless claims came in slightly higher than expected and producer prices rose slightly faster than expected. The fragility of the US recovery, coupled with the ongoing uncertainty over fiscal policy in the US continues to weigh on investor sentiment.
See how you can start spread betting with City Index at http://www.cityindex.co.uk/spread-betting/
Spread betting and CFDs are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.
* Spread betting and CFD trading are exempt from UK stamp duty. Spread betting is also exempt from UK Capital Gains Tax. However, tax laws are subject to change and depend on individual circumstances. Please seek independent advice if necessary.
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. Visit http://www.cityindex.co.uk/ for more information.