Greater London, England -- (SBWire) -- 09/14/2010 -- Joshua Raymond, Market Strategist of spread betting provider City Index commented:
“Selling in European banks, which had sent European Indices lower for the second day running in the morning session, was counterweighed by strength in energy firms, helping European Indices to stage a recovery and post gains on Wednesday.
BP report brightens energy firms
Much of the afternoon’s turnaround was led by gains in energy firms, with investors particularly enjoying BP’s report which attempted to diversify blame for the oil spill to some of its contractors. Today’s report by BP is a key attempt by the firm to re-establish its reputation as a leading energy firm. Now that some of the more vociferous noise has calmed somewhat from US politicians, todays report is the perfect opportunity for the battered firm to stage a public defence of its actions.
Shareholders have clearly taken today’s report well, particularly if there is a chance to relocate any part of its liabilities onto some of its contractors whom BP claims was at fault.
Banks weigh
Banking stocks continued to weigh on the markets however, with the report in the Wall Street Journal earlier in the week regarding unstated exposures in banks to government debt still playing on traders’ minds, particularly with the market devoid of much other news or data. Moreover the move by Ireland to extend its guarantees to short term bank liabilities is also adding to a degree of uncertainty around the banks at present.. There is a concern that these banking concerns trigger a deeper wave of risk aversion and this could pressurize Europe Indices. That said, today's recovery in stock prices, which has seen the FTSE, DAX and CAC all post solid gains, is helping to convince that earlier weakness in the week was more about profit taking than risk aversion.
German Exports surprisingly fall whilst Industrial Output rises less than expected
German exports fell in July by 1.5% when the market was expecting them to remain flat on the month, whilst Industrial output grew much less than the market had predicted, pointing to a slowdown in economic growth. Exports have been rather bullish for much of the year after global stimulus efforts and a weak euro has been a strong engine behind Germany’s economic recovery. However, the surprising slump in exports and slower growth in industrial output could point to a weakening global economy with Germany the second biggest exporter in the world, behind China.”
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Spread Betting Market News: Energy Firms Lead Turnaround for Eu Indices
City Index’s team of spread betting and CFD trading market experts have extensive experience in the financial markets. Here, Market Strategist Joshua Raymond gives a view over the spread betting news September 8th to help give you a trading edge.