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Archive for June, 2010

Jun
30

FTSE 100 up on trading platforms

June 30th, 2010

As of 12:00 BST today (June 30th) AstraZeneca shares on the FTSE 100 were up by 8.89 per cent, leading a surge of company values.

Trading platforms saw values of FTSE 100 firms soar, with BP – still battling the oil spill in the Gulf of Mexico which has now hit Mississippi shores – shares up by 7.89 per cent as of the same time.

Many investors keeping a close eye on trading platforms could believe the FTSE 100 rally partially offsets the heavy falls seen yesterday.

Referring to the fact the FTSE 100 yesterday closed at its lowest since September 4th 2009, Reuters said the advance of AstraZeneca has lifted the pharmaceutical sector.

As of 12:09 BST, shares in GlaxoSmithKline were up by 1.78 per cent.

Trading platforms also saw shares in Unilever, United Utilities, Cairn Energy and Essar Energy rise as of 12:11 BST.

Speaking to the international news agency, Geoff Wilkinson, head of research at Mint, said: "There’s a certain amount of bottom fishing going on here considering the falls of yesterday."

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Posted in Trading News |

Jun
30

Gold ‘a safe haven’ in CFD trading

June 30th, 2010

The popularity of gold among investors continues to remain as concerns over economic instability push people to bullion.

CFD trading could today (June 30th) witness a second day of investor interest, after Reuters yesterday reported by 15:25 BST, spot gold was priced at $1,232.70 (£820.9) per ounce on trading platforms.

According to the international news agency, gold is expected to have been the best-performing metal during the second quarter.

Citigroup analyst David Thurtell said: "It could easily get there if economic data is disappointing."

In times of financial uncertainty, CFD trading often sees a rush to bullion, which is seen as a safe haven and helps to protect assets that might otherwise be at risk.

This may have been highlighted by last week’s record high on June 21st.

However, Reuters revealed gold dipped slightly lower – and the euro rose – today after the European Central Bank revealed it had given less-than-expected loans to banks to help their stability.

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Posted in CFD News, Trading News |

Jun
30

Dip in consumer confidence hits US trading platforms

June 30th, 2010

The recovery of the US economy has suffered a setback after new data revealed consumer confidence dropped unexpectedly during June.

According to the Conference Board’s Consumer Confidence Index, sentiment among the public slipped having previously risen for three consecutive months, putting the index at 52.9 points – down from the 62.7 recorded during May.

The dip resulted in stocks falling for those using trading platforms to exchange Wall Street shares yesterday, a pattern that was repeated at the start of trading today.

Commenting on the dip – which was greater than the slide to 62.5 points that had been predicted by the 71 experts who took part in a Bloomberg poll – the Conference Board’s Lynn Franco said confidence was largely down due to job concerns.

"Increasing uncertainty and apprehension about the future state of the economy and labour market … are the primary reasons for the sharp reversal in confidence," she stated.

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Posted in Trading News |

Jun
30

Sterling slips against euro on Forex trading platforms

June 30th, 2010

Comments from the European Central Bank (ECB) helped ease investor concerns about the recovery of the eurozone.

Forex trading platforms have today (June 30th) seen the euro rise by one per cent against sterling after the ECB revealed it has not financially supported banks as much as it thought it would.

As a result, Forex trading platforms have seen the euro regain losses and rally against the British pound, despite sterling recently gaining ground amid confidence the emergency Budget would help balance the deficit.

The news comes as sterling hit a 19-month high on Forex trading platforms yesterday, Reuters reported.

Many investors expected ECB figures to show a greater reliance from banks, impacting upon the value of the single currency.

Speaking to the international news agency, currency analyst at Brown Brothers Harriman Audrey Childe-Freeman said: "There’s a lot less risk associated with the UK in general, compared with the euro zone."

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Posted in Forex News, Trading News |

Jun
30

CFD spread users ’should diversify portfolio’

June 30th, 2010

A new report has revealed investors should diversify their income portfolios.

CFD spread users may wish to take note of the advice offered by JP Morgan Asset Management, which noted ten companies account for over half of FTSE All Share dividend income.

An "historic reliance" on a few domestic stocks should be ended, with emerging market companies a particularly good investment to make, the organisation stated.

Individuals operating within the CFD spread sector were told emerging markets have the potential for capital growth and may prove to be an ideal alternative to UK, well-known companies.

Head of investment trusts at JP Morgan Asset Management David Barron said: "UK investors are experiencing low interest rates, as well as an increasing concentration of income from just a handful of UK stocks."

He added many firms in emerging markets have steered through the recession and currently enjoy strong balance sheets.

Emerging markets include India, China, Mexico, Russia and South Africa.

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Posted in CFD News, Trading News |

Jun
30

UK house prices climbing, suggests Nationwide data

June 30th, 2010

House prices in the UK climbed three per cent in the first half of 2010, new data from Nationwide has revealed.

Figures from the lender show that the average value of a property in the country stood at £170,111 in June 2010, giving a boost to investors operating on trading platforms.

However, the seasonally-adjusted monthly change in prices dipped to 0.1 per cent in June, down from 0.5 per cent in May.

Chief economist at Nationwide Martin Gahbauer said June brought "broad stability" to the housing market.

"Barring a significant pick-up in house prices over the next few months, the annual rate of inflation should continue to drift lower," he remarked, noting this is largely due to the "very strong price increases" that were seen last summer.

However data released by the Land Registry on Monday (June 28th) painted a more negative picture, with the statistics showing a 0.2 per cent month-on-month decrease in house prices took place between April and May,

This, the company said, was the first negative monthly movement since last April.

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Posted in Trading News |

Jun
30

Financial Services Authority proposes auditors changes

June 30th, 2010

The Financial Services Authority (FSA) has revealed proposals that intend to encourage debate about the role auditors can play in light of the economic crisis.

A paper, published by the FSA and the Financial Reporting Council (FRC), lays out ways in which auditors and the two bodies can work together to improve prudential regulation.

It also suggests a variety of ways in which changes have – and could continue to – be made to increase the effectiveness with which work is completed.

Paul Sharma, FSA director of prudential policy, said: "Our experience has indicated that, at times, auditors have focused too much on gathering and accepting evidence to support firms’ assertions rather than exercising sufficient professional scepticism in their approach."

He added this is not up to the standard auditors are expected to achieve from the FSA and society as a whole.

The FSA is the regulator of the financial services industry in the UK.

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Posted in Trading News |

Jun
29

Sterling hits high against euro on Forex trading platforms

June 29th, 2010

Sterling has reached a 19-month high against the euro during trading today, as investors moved away from the single European currency due to continued worries about debt concerns.

Reuters reports the euro fell to 80.92p during early activity on Forex trading platforms and was priced at 81.14p by 10:25 BST.

The value of the euro fell as investors raised concerns over bank repayments due to be made to the European Central Bank this week and Christan Lawrence of RBC Capital Markets was quoted by the news agency as saying further falls are expected.

"Certainly the path is down for the euro," he remarked.

And Kenneth Broux of Lloyds Banking Group added there could be a further slide ahead "if confidence deserts the euro".

Worries over ECB repayments also caused shares around the world to slide, with the FTSE 100 and European markets all moving into negative territory.

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Posted in Forex News, Trading News |

Jun
29

Gold dips on commodity trading platforms

June 29th, 2010

The price of gold has slid slightly during trading this morning, as investors opted to sell commodities in the wake of a drop on stock markets.

Reuters reports spot gold was priced at $1,232.70 (£818.50) per ounce on trading platforms by 15:25 BST, down from $1,236.05 per ounce in New York yesterday.

A stronger dollar also encouraged to sell off the precious metal, but falls in its price were limited by its safe-haven appeal, as it is being used to protect assets from the current economic uncertainty seen across Europe.

Andrey Kryuchenkov of VTB Capital was quoted by the news agency as saying he expects gold prices to remain under pressure.

"The upside is capped with the market being overly long, and the US dollar is set to remain more or less well supported," he remarked.

The dip has come despite Seoul-based commodity trader Yu Kyung Kyu telling Bloomberg earlier n the week the metal was expected to extend its rise due to the eurozone debt situation.

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Posted in Trading News |

Jun
29

Crude oil prices slip on trading platforms

June 29th, 2010

Crude oil prices have slipped below $78 (£52) today (June 29th), following movement of a tropical storm away from the key production area in the Gulf of Mexico.

Bloomberg reports oil for delivery in August declined on trading platforms as much as 71 cents, or 0.9 per cent, to $77.54 a barrel in electronic trading on the New York Mercantile Exchange.

The commodity was at $77.60 at 01:16 local time in Singapore.

It had slipped by 61 cents, 0.8 per cent, to $78.25 yesterday and crude is heading for its first quarterly decline since the end of 2008.

Ben Westmore, minerals and energy economist at National Australia Bank in Melbourne, told the news provider: "What seems to have supported oil prices has been the news of storms in the Gulf, tightening some of the supply side of the market. Supply is looking more positive now."

The ease in concerns about the tropical storm meant London’s Brent North Sea crude for August lost 13 cents to settle at $77.46.

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Posted in Trading News |

Jun
28

Forex report: Euro sees record low vs Swiss franc

June 28th, 2010

The Swiss franc today (June 28th) reached a record high against the euro, bolstered by comments from Switzerland’s central bank.

Investors on Forex trading platforms saw the value of the euro against the Swiss franc plummet after Jean-Pierre Danthine, board member of the Swiss National Bank, was quoted by the l’agefi newspaper as saying exports have been strong despite the stronger currency.

He added deflationary risks have also disappeared, boosting the performance of the Swiss franc on trading platforms.

At 15:52 BST one euro equalled 1.338 Swiss francs, a slight increase on the day’s low.

According to Reuters, it appeared the G20 meeting in Canada did little to impact upon Forex trading platforms, despite the fact countries decided on different strategies to help reduce deficits and bolster economic recovery.

The euro also dropped to a 19-month low against sterling as markets – and leaders – looked favourably to the UK’s recent emergency Budget.

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Posted in Trading News |

Jun
28

Nikkei ‘to test 6-month lows on trading platforms’

June 28th, 2010

At 15:31 BST today (June 28th) the Nikkei 225 was down by 0.447 per cent to stand at 9,693.940 points.

Trading platforms saw their Japanese counterpart tumble to its lowest close for more than two weeks, with many people in the markets suggesting it could test six-month lows that were reached this month.

Speaking to Reuters, deputy general manager at Cosmo Securities Hajime Nakajima said gains on trading platforms were currently subdued as the markets wait for US economic data such as the performance of the employment sector.

"Japanese stocks – including technical indicators, have fallen quite a bit – and the market is not in a position to start climbing on domestic reasons these days, particularly before the election," he added.

The jobs data is due on Friday and could give further indication of how the US economy is recovering.

It follows the US Federal Reserve revealing last week growth conditions for the economy were "less supportive" than previously.

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Posted in Trading News |

Jun
28

US consumer spending increase exceeds expectations

June 28th, 2010

Retail shares in the US have been given a potential boost by new figures revealing a greater-than-expected climb in consumer spending.

According to new figures from the Commerce Department spending was up 0.2 per cent during May after a flat April, news that could improve sentiment among those exchanging shares in retailers on trading platforms.

The 0.2 per cent increase was higher than the 0.1 per cent rise that had been widely forecast by analysts, with this being the consensus reached by 61 analysts questioned on the matter by Bloomberg.

Michael Feroli of JPMorgan Chase was quoted by the news agency as saying "the labour market is gradually improving, labour income is picking up and that should continue to support spending".

And there was also positive news in the form of an increase in the savings rate to four per cent – an eight-month high – however the 0.4 per cent increase in incomes was slightly lower than had been expected.

Bloomberg reports the Dow Jones, Nasdaq and Standard & Poor’s 500 were all up by 15:03 BST, climbing by as much as 0.26 per cent.

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Posted in Trading News |

Jun
28

Lean Cuts Put the Bull Into Sterling as Fat to be Trimmed in Europe

June 28th, 2010

The major currencies all rallied on market open against the dollar on Sunday; as China start to de-peg their currency from the dollar and start to manage the Yuan with reference to a  basket of currencies. This will hopefully allow more flexibility and in time be sufficient enough to rebalance the world economy, however the timing of this falls too close to the G20 summit and is purely a smoke screen before the talks.

The emergency budget on Tuesday by George Osborne got a positive market response from traders,  the realisation that something has to be done, and done now, has put some confidence back into the market.  Perhaps the most beneficial  during this World Cup period being the cut in cider tax and a hold on beer. These are short term, positive signals and we have to be realistic that hard times are ahead. Look, therefore, for shorting opportunities.

The Euro rallied as with other currencies at the beginning of the week but has faded out towards the end. The build up to the G20 summit saw Merkel defending austerity measures as US and UK politicians question whether Germany is doing enough to stimulate economic growth in the Eurozone. Germany is looking to announce plans for €80b in budget cuts in the next 4 years. The French, pushing the economic problems facing the Euro aside, are having a full and public enquiry into their national football team’s disgraceful performance in the World Cup. Well Sarkozy, as long as you give those overpaid, arrogant peacocks a good talking to then everything else will just fall into place. Where do they all live? London! Euro a great sell level on the chart.

Gold had a very range bound week trading 1230.0 to 1243.0 levels. There was a dip to 1226.0 which provided some good buying incentive. The indicators on the chart are picking these levels as pullbacks from reaching new highs. I would look for 1280.0 as the next new high with a potential pullback to 1250.0 level. Gold moved $25 at the beginning of the week as upward momentum faded. The long gold strategy will be continually used for the foreseeable future as financial regulation and the increase of it, is one of the main topics for western economies.

About Author:

Andrew Johnston is Senior Institutional Trader with One Financial Markets; a former analyst with Goldman Sachs and more than ten years successful trading experience, Andrew is currently Head of One Financial Markets institutional desk.

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Posted in Trader's Diary |

Jun
28

Four days of European share losses ends

June 28th, 2010

A four-day run of European share losses ended this morning (June 28th) as the G20 agreed to provide banks with more time to take on strict new rules.

Following the announcement, a number of banks recorded gains on trading platforms as the markets opened, with Royal Bank of Scotland, Societe Generale and BNP Paribas rising between 0.9 per cent and 1.2 per cent.

At 08:11 BST, the FTSEurofirst 300 index of top European shares was up 0.5 per cent to 1,018.26 points, following a previous session decline of 0.7 per cent.

Commenting on the market, Luc Van Hecka, chief economist at KBC Securities, told Reuters: "There are some legitimate doubts. Government finances in most of the mature economies are really in trouble, so we have to do something about that. But it will probably pressure growth."

On Sunday the G20 countries agreed to take adopt individual methods to try and cut budget deficits and ensure banking systems are safe.

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Posted in Trading News |

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