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
✖

FTSE near flat on Monday as traders pause for breath ahead of GDP data

Article By: ,  Financial Analyst
September 28, 2010 11:05 AM

The FTSE 100 traded near flat territory on Monday as investors paused for breath and awaited the final reading of UK GDP for the second quarter tomorrow. No change is expected in the reading although given the unpredictability of recent economic data, traders are not taking too many chances in case the data disappoints to the downside.

We have seen some minimal buying strength in the miners and energy firms weighed down by selling in the banks but in truth it has been a fairly lacklustre trading day with little drivers.

Yet again the FTSE has struggled to break through resistance levels between 5610-5635 and whilst the momentum may be waning, there is every chance that if we get some solid economic data through later this week, particularly tomorrows US consumer confidence or UK GDP, Indices could push on further. The longer we remain in consolidation mode however the higher the potential for profit taking and for the markets to fall off their highs.

In a session that has had a vacuum of significant news stories, much investor actions have been dictated by broker recommendations. Sage shares lead the FTSE 100 winners list after Barclays started its coverage of the European software/IT services with a positive view.

Bank of America/Merrill Lynch cut its rating on Smiths Group to neutral, from buy, causing shares to fall by 1.7%. In the same update on the sector, the bank highlighted Weir Group as one of its top picks for the sector, which triggered traders into building upon existing positions, forcing shares higher by 1.9%..

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