Spreadex Market Update

Markets in state of anxiety



The markets are clearly in a state of anxiety as participants digest all that is happening with Spain, Greece and the EU’s efforts to deliver a solution that kills off the contagion for good.

Many of our clients are shorting risk-assets such as EUR/USD and equities, and if this is the case across other spread betting and CFD providers, then it seems as though we are seeing a tug of war between short term opportunists on the downside and the longer term investor who views these recent declines as an opportunity to buy some undervalued stock and this may be causing the choppy trading at present.

German Chancellor Angela Merkel’s comments regarding joint issuance bonds within a limited timeframe as an alternative to full blown Eurobonds has yet to impact the markets. There seems to be gradual progress on this subject, which if continues, should eventually give a substantial lift in confidence throughout the market.

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