Tag: cfd trading

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European Shares Drop for 8 Straight Weeks

Global stocks slid in recent trading activity as concerns the Greek parliament may not approve austerity measures that are crucial for securing more bailout funds outweighed better-than-expected economic data.

In spread trading, European shares extended their slide to eight straight weeks in the longest losing streak since 1998, with Italian banks tumbling on Greek-related worries.

In share trading, concerns about the long-simmering European debt crisis trumped better-than-expected data on durable goods orders in the United States and German sentiment. May durable goods orders rose 1.9 percent after dropping 2.7 percent in April, the Commerce Department said. Economists had expected May’s orders to rise 1.5 percent.

The Munich-based Ifo think tank said its business climate index, based on a monthly survey of some 7,000 firms, rose to 114.5 in June from an originally reported 114.2 in May.

The Federal Reserve cut its forecast for US economic growth but gave no hint of further stimulus plans. The central bank said the US economy should grow between 2.7 percent and 2.9 percent this year, down from an April projection of growth between 3.1 percent and 3.3 percent.

The Fed’s pledge to continue maintaining interest rates at an exceptionally low level for an extended period indirectly buoyed oil prices because of the policy’s longer-term impact on the dollar.

The euro added to losses after Fed Chairman Ben Bernanke said at a news conference that a disorderly default in a European country would roil financial markets and the impact on the United States would be “quite significant.”

Economists said the Fed’s statement after a meeting by the interest-rate setting Federal Open Market Committee offered no surprises.

CFD Trading and Financial Spread Trading do involve a high degree of risk to your investment capital, these are geared products meaning that you can lose more than the investment that you originally committed. If you are trading through CFDs and Financial Spread Trading, you should always trade with money that you can afford to lose. Make sure that you recognise the risk involved. CFDs and Spread Trading may not be suitable for your trading strategy; seek impartial financial guidance when appropriate.

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Investors Struggle with Exceptionally Volatile Commodity Markets

Gold and oil seesawed in recent trading activity and finished mixed as pressure from end-of-month profit taking and mixed U.S. economic readings were countered at times by hopes for new central bank stimulus measures and big declines in the gasoline inventory.

Trading in most commodity markets was choppy, as investors adjusted their books for the end of an exceptionally volatile August, a month typically slowed by summer vacations. Arabica coffee and raw sugar futures on ICE eased back, tracking a setback in a wide range of commodity markets including grains and base metals. Note that you can speculate on coffee futures with FinancialSpreads.com.

Other financial markets, including global equities, were also losing ground with investors entering the month in one of the most bearish moods seen lately. Corn, soybeans and wheat also rose as investors in agricultural commodities focused on fundamentals such as crop yields.

Industrial commodities dropped after the figures, and traders and analysts said they would have fallen further except that the weak data made it more likely the U.S. Federal Reserve would launch a third round of government debt purchases, or quantitative easing, known on Wall Street as QE3.

Also in commodities, U.S. natural gas futures ended lower in recent trading activity, as East Coast power outages left in the wake of Hurricane Irene and moderating U.S. weather slowed overall demand and helped drive the September futures market to a soft expiration.

Hurricane Irene, which tore up the East Coast, left more than 5 million homes and businesses without power, but there are no indications of any serious damage to gas pipeline and power plant infrastructure.

The natural gas price declines came as comfortable supplies, a weak economy and forecasts for milder weather trumped concerns about a Gulf Coast storm.

CFD Trading and Spread Trading are financially geared trading products which entail a high level of risk. You may incur losses that are in excess of the original amount you invested. If you are trading through Spread Trading and CFDs, only speculate with money that you can afford to lose. Always ensure you fully recognise the risk involved when investing with these investment formats. Please be aware that Spread Trading and CFD Trading may not be suited to your investment needs. Where necessary, obtain independent investment guidance.