London, England -- (SBWIRE) -- 03/11/2011 -- Spread betting and CFD trading provider City Index supply a daily market commentary to keep traders abreast of the changes in the markets. Today, Market Strategist, Joshua Raymond looks at how the developments in Libya have affected oil prices.
“The FTSE 100, DAX and CAC all posted gains in early trading as stocks recovered from initial weakness. We have seen investors come in to buy stocks after a somewhat aggressive sell off in later trading in Friday.
There is a lack of economic data out today and so trading has been given a bit of a free reign. All three heavyweight sectors; miners, energy and banking stocks are higher today with the latter gaining the most and as such leading European indices higher. The FTSE needs to break through current resistance between 6040-6050 before the UK Index can target the 6100 level again.
However, any gains made in trading was lacking in energy somewhat with investors clearly trading with a fixated eye on developments in Libya – where fighting has intensified over the last few days – and any subsequent spikes in the price of crude oil. Both Nymex and Brent crude oil has rallied higher this morning on the escalating violence in Libya and traders remain sensitive to any significant price spikes in crude oil.
Individuals have been speculating about the situation in Libya potentially turning into a civil war and whilst the weekend’s battles have certainly already had the hallmarks of this, a fierce and prolonged civil war could have significant implications for the price of crude oil and equity markets alike.
One would dread to think the impact on the UK economy, with interest rate hikes to come, should motorists start having to pay £2 per litre at the pumps and the situation in Libya and the Middle East is certainly threatening this, whether we like it or not.
The scenario in North Africa and the Middle East is likely to keep a roof on any equity rally for the time being until traders start to see the price of crude oil consolidate.
Inmarsat shares slump 10% on earnings
Traders sold out of Inmarsat shares this morning after the satellite telecommunications operator said that maritime revenue would grow by 2%-4% this year, below market expectations and dampening sentiment somewhat. The company relies on maritime operations for almost half its total revenue and so the lower than expected growth and cautious tone of the results has hit trading sentiment today. As a result, shares hit a new 16-month low of 587p.”
To stay up to date with the daily movements in the markets for spread betting and CFD trading, visit the market analysis section of City Index here: http://www.cityindex.co.uk/market-analysis/
Spread betting and CFD trading are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.
About City Index
Today more and more individual traders are discovering the benefits of derivatives, and many of them are discovering them through a City Index.
As a group, we transact in excess of 1.5 million trades every month for individuals in over 50 countries worldwide. We provide access to a wide range of instruments including margined foreign exchange, contracts for differences (CFDs) and, in the UK, spread betting.
We constantly look to widen the range of assets we offer, improve the performance of our platforms and expand the range of services we provide. The result is that our customers benefit from innovative trading tools with transparent pricing, competitive spreads, and a high standard of customer service and support. Visit http://www.cityindex.co.uk/ for more information.
Contact:
Joshua Raymond,
City Index Group,
Tel: +44(0)20-7107-7002,
Email: joshua.raymond@cityindex.co.uk