Spreadex Market Update
Tuesday, March 13, 2012 - Afternoon Market Update
European and US indices fayre well
European and US equity indices are performing well once again today, helped by the apparent absence of negative news flows and strong German economic data.
The market this week could be said to look healthier than it did two weeks earlier at a similar price for one good reason: at the beginning of last week the sellers tested those looking to buy into the current market, and the negative price action created as a result of that selling quickly recovered, within a week in fact.
And given that one of the most significant concerns of participants of late has been the virtually uncorrected positive run equities have had since late last year, the cash that investors believed would be taken from the table has to some extent happened.
This, then, potentially bodes well for anyone long of stocks at the moment, with profit-taking so far comfortably absorbed.
On the main market in London today investors turn to the continued volatility seen from Gulf Keystone (GKP), an oil and gas explorer operating in the northern Iraq region of Kurdistan listed through AIM.
The stock, subject to various on-going rumours, is trading higher 10% today after falling some 16% yesterday in spite of a positive operational update. Various broker comments pointing to the political risks surrounding the company’s licences and a rumour that Exxon Mobil (XOM) could abstain from bidding for the company or its assets dragged the stock’s price much lower from its recent intra-day high of 465p. Given the recent eye-watering volatility, leverage ought to be used only with extreme caution.
For further information on the trading day ahead, take a look at our Financial Diary
, which previews all the Economic Data due out to today and projected or previous figures.
Our Financial Diary is updated in real time as the figures are released throughout the day.
If you are unsure what different Economic Figures mean take a look at our Economic Indicators Explained guide
For a look at the trading week ahead our Financial Diary also lists all the companies due to submit trading updates this week. Each Friday, our diary will preview the forthcoming week's economic indicators and company reports schedule.
For market trends and analysis, don't forget our charts have automatically generated support and resistance trend lines helping aid your financial spread betting
with technical analysis. For more help on using our charts, view our Guide to Trading with Charts
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