Spreadex Market Update

U.S. Futures advance



U.S. futures have advanced for a fourth consecutive day today, as a softening of housing starts has prompted investors to wager that the Fed might take actions to stimulate the economy ahead of the two-day meeting to begin later today.

With the Fed more likely to act against a stalling U.S. recovery, today’s numbers provide in part the legitimacy required to consider making stimulus bets.

Global stocks and other risk assets are rising in spite of an increasingly troublesome environment, helping illustrate just how poor sentiment has been.

Indeed, if stocks are rallying without a significant rerating to outlook, clues can be seen as to just how unloved stocks have become. Stimulus might help to underpin prices near-term.

But significant risks to investors can be found in abundance. ‘Spanic’, for example, gives participants an idea of how badly Spain’s fiscal programme looks in light of growth forecasts and its debts, or how damaging the interest rate the country must pay to borrow is even with €100bn recently injected. The market, at least for now, continues to punish those sovereigns with an unconvincing hold over their debts.

DISCLAIMER


Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.

Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.

No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.

The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.