Spreadex Market Update

08.10.12 Monday Afternoon



UK Stocks have dropped on today with resource firms taking the biggest hit after news that The World Bank cut its 2012 growth forecast for the country to 7.7% from 8.2 % due to weakening growth and slowing investment following austerity measures to cool the overheating real estate market. US shares also find themselves lower as slower growth in Asia could also potentially drag down the U.S. economy, with one of the few bright points for the U.S. during the recession being the fact that there was tremendous growth in export demand by developing nations in Asia and other regions.

Traders have also had to keep the other eye on developments in Europe as Euro-Zone Finance ministers meet today, with Spain and Greece’s troubles likely to be a hot topic of conversation. We have seen the Euro fall against the dollar and Bunds rising due to the uncertainty, although the likelihood is that ministers will be assessing developments rather than making any major new decisions.

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