CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Choppy trading for UK stocks as German Ifo beats forecasts but Spanish yields rise

Article By: ,  Financial Analyst
August 7, 2012 11:30 AM

UK and European stocks saw losses on Friday as a 0.2% rise in the mining sector was offset by a 1.7% fall in oil and gas stocks with risk appetite cooled by rising Spanish bond yields despite a surprising rise in a German business confidence measure.

The FTSE 100 had rallied five points after the first hour of trading whilst the German DAX and French CAC traded between flat and small gains. But by late morning trade all three European Indices traded in negative territory between losses of 0.2% and 0.5%.

The German Ifo business sentiment index for March was a bit of a surprise this morning. Business climate rose to 109.9 from 109.9 against expectations of a fall to 109.5. Business conditions rose to 117.5 from 117.4 when a fall had been expected and expectations – the forward looking segment of the data – remained flat at 102.7 when a fall to 102.5 had been expected.

UK retail sales also shocked this morning to come in much better than expected. UK retail sales grew 1.8% in March vs expectations of 0.5%, whilst sales grew 3.3% on an annual basis vs 1.4% expected. The data gave retail stocks listed in London an immediate lift, though any lift in demand was tempered some 15 minutes after the data was released, giving stocks a knee jerk effect lift temporarily.

The lift given to stocks and risk appetite in general from better than expected business sentiment data out of Germany and UK retail sales was however short lived for European stock markets as the morning progressed.

Benchmark 10-year Spanish bond yields raced back to the 6% level however and this kept most European stock gains fragile to reversal and trading choppy.

There is no other major economic data due out for the remainder of the European trading session and so the focus for the rest of the session will be portfolio protection ahead of the weekend and the earnings release of bellwether US stock General Electric before the open of the US trading session.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024