30 Jun 2011
ETX Capital, a London-based spread betting provider, has upgraded its dealing software to support trailing stop orders. The new tool is now integrated in the software and traders can start using it to better protect profits.
ETX Capital has been offering several order types to its clients to allow them to control potential losses. That is the case of stop and guaranteed stop orders. At the same time, limit orders to lock in profits have been also available since long ago. The introduction of trailing stops adds flexibility and allows the trader to more effectively control losses without throwing away upside potential.
Asian stock markets are following other risk assets higher as sentiment remains elevated, as it has for most of the week. The EUR/USD has traded above the key psychological 1.45 area, continuing the gains made after the austerity vote in Greece. The Dollar is currently lower against its major counterparts. For the moment, markets seem to be working off of the assumption that “no news is good news” and as a result risk appetite is making progress. The EUR/USD is seen between 1.4520-1.4420, with the USD/JPY slightly lower at 80.90-80.30.
The majority of the attention continues to center on the Eurozone. Markets will be watching CPI data and a strong number here will keep interest rate expectations supported and bring buyers to the Euro. The current expectation is that there is an 80% chance of a rate hike at the next ECB meeting, and a strong CPI number will bring us even closer to a confirmation of this.
The upward moves in the Euro are being driven by the austerity vote yesterday. Trading conditions were choppy for the most part as some sections of parliament voted against the bill and this added an additional element of uncertainty.
However, the bill was eventually passed, with a vote of 155 to 138. After this, the intraday moves were strong and the Euro broke above key psychological levels. After the vote, the German Chancellor (Merkel) said that the agreement will help to stabilize the Euro. But other ECB council members (Orphanides, for example) continue to voice concerns about potential negatives that exist, saying that the debt crisis is still “quite dangerous territory”.
There will be a second parliamentary vote on Thursday, which is meant to pass the legislation that will be required to put the agreed austerity measures into practice. This second vote is also expected to pass even though the Prime Minister (Papandreou) expelled his deputy from the political party (after he showed dissention) and this leaves the party with a slimmer voting majority.
In Switzerland, the finance minister (Schneider-Ammann) said that the government should do nothing to interfere with the value of the Franc. He expressed the belief that exporters will be able to tolerate the historical elevated currency value and that the strength we are seeing will likely continue for some time, which is essentially a green light to buy the CHF on any dips.
In the UK, GfK consumer confidence dropped to -25 for the month of June, which was lower than market expectations.
The better figures from May came from the fact that the better weather conditions that are being seen and bank holidays. So, the June figures are more indicative of the overall trend, with the retail sector in the UK being one of the weaker points.
In Canada, inflation figures for the month of May were released and these were well above market expectations. This led the USD/CAD lower, ending the small rally that had been seen recently. This pair will continue to see declines as long as there risk appetite remains healthy. The headline CPI figure rose +3.7% on a yearly basis, well above the +3.3% rise that was the consensus expectation. Core figures were also much higher, coming in at +1.8% on a yearly basis.
UK equity markets are looking to see a higher open, with FTSE futures suggesting a rise of 30 points. Macro data will come in the form of M4 Money Supply and Mortgage Approvals, with European Nickel and Betfair Group reporting earnings today. Asian markets were higher for the most part, which is indicative of the market’s perception that the Greek Parliament will vote to enact the austerity plan proposed by the EU. In Japan, stocks rose, helped mostly by the utility sector, with Tokyo Electric Power (which is where most of the attention has been focused) making gains on government stimulus proposals. The Nikkei is up 1.2%, rising above 9,750. In China, markets are negative on the day, once again led by the banking sector.
US stock futures are following Europe’s lead, as the S & P 500 futures are suggesting a ten point rise. Macro data during the North American session will come in the form of Pending Home Sales and Mortgage Applications. Earnings releases will be seen from General Mills, Family Dollar Stores and Monsanto Co. After yesterday’s close, Bank of America rose 1.1%, after disclosing a mortgage backed security agreement. Sealy also saw significant gains (up 9.2%) after releasing strong earnings for the second quarter. The S &P 500 finished the day 1.3% higher, as the market seems to approve of the way the debt situation in Greece is being handled.
European markets are still seeing most of the gains, with the DAX futures showing a rise of 33 points with the CAC following suit, gaining is 15 prior to the session’s open. Macro data today will be GDP from France, and the Eurozone Consumer Confidence Survey. Swiss will also be released, with the KOF Leading Indicator scheduled today.
European banks made some headlines today, as Deutsche Bank selected Anthony Whittemore, as the head of the North American M & A division. Commerzbank also released a statement saying they plan to target smaller companies and raise 1 billion Euros in credit services for renewable energy companies.
In currencies, the Euro is currently flat against the Dollar after making significant gains in recent sessions. The main event risk continues to be the Greek Parliament austerity vote, with markets anticipating a favorable result. Expectations to today’s macro data are also optimistic, so barring any major surprises, equity markets are likely to find some support today. The Yen is also flat against the Dollar (up 0.1%), with marker rumors suggesting that Japanese import companies bought Yen after the drop seen yesterday.
ECB President (Trichet) gave a speech yesterday, and said Europe needs to renew its long term plans for its economic future. His main suggestion was that individual governments need to assess their economies in more accurate ways, as the Eurozone contains areas with many different financial circumstances. Christine Lagarde, who was the Finance Minister in France, was selected as the head of the IMF, and this is the first time the position has been received by a woman. Emerging economies opposed her candidacy but she has pledged to give attention to the needs of developing economies.
28 Jun 2011
UK equity markets will probably see some buying to start the session, as the FTSE 100 futures are suggesting a higher open by 30 points. Macro data will give some hints for sentiment direction as Gross Domestic Product, Business Investment and Current Account data will be released.
Asian markets were mixed overnight. In Japan, markets were higher, as risk sentiment was helped by the progress that has been made with the Greek debt crisis. Tokyo Steel Manufacturing is one example, which rose after a broker upgrade from “Neutral” to “Buy.” Ricoh was also higher, after news that the EU plans to lower tariffs for multi-function printing systems. The Nikkei is saw gains of 1.1%, to trade just above 9,680.
In China, stock markets were lower, as banking sector accounted for many of the losses. Many analysts have written negative reports, suggesting that growth in corporate earnings will be damaged by the seemingly inevitable tightening measures that are expected from the central bank.
US stock futures are currently higher, as the S & P 500 is pointed up 11 points. Macro releases today will come in the form Consumer Confidence, the S & P Case Shiller Home Price Index and the manufacturing Index from the Richmond Fed. Private earnings releases will also be seen from Synnex Corp., Arcadia Resources, and Shaw Group. Nike saw large gains yesterday (4.5%), on a strong earnings release. The close yesterday saw the S & P 500 up 0.9%, on improved risk sentiment driven by the Greek austerity agreement.
The DAX futures are showing higher open by 45 points and the CAC is following suit, currently 24 points higher. Trading will be guided today by the German CPI figures, Import Prices, and the GfK Consumer Confidence survey.
The Euro saw some buying overnight against the Dollar, which is likely the favorable response to positive results from discussions with the Greek parliament. The EUR/USD pair is being helped by the market expectation that US home prices will continue to see declines (which has been the case for 10 consecutive months).
The AUD/USD is continuing its drop from the all time highs above 1.10. We have seen very consistent lower highs since that top was formed and the only thing that was missing for a bearish confirmation was a break of the psychological and 38% Fib level at 1.05. This support has clearly given way in the last few sessions as the MACD indicator confirms the negative momentum. We are currently short this pair and are targeting the 61.8% fib level of the move from 0.97, which was also the previous breakout point. This is a contrarian position within a massive uptrend, so the 1.02 level is not necessarily expected in the short term.
The Gold chart is also starting to look interesting as we now have a lower high at 1560. The 4H indicator is bearish, so we will look to sell into the previous support level of 1510. Support currently rests at 1490.
27 Jun 2011
The long awaited MoneyAM award winners have just been announced. Financial providers have been evaluated by MoneyAM that has recognised the innovative spirit and quality of service and products of seventeen companies from the world of finance.
This year, City Index earned the Best Online Spread Betting Service stealing it from the past year winner IG Index. City Index was able to also get another award, this time for Best Mobile Trading Platform. That can be viewed as a fair win giving all the efforts the company has made developing its mobile platforms.
Alpari (UK) was elected as Best Active Trading Platform in a category won by eToro in 2010. Spreadex was able to get the Best Online Charts prize and Barclays Stockbrokers the Overall Online Provider, both awards in IG Index possession. In fact it was a surprise that IG Index was not able to get any award in this year’s event. Nevertheless, IG Markets, a subsidiary of IG group sister of IG Index, won the Best Direct Market Access Provider award.
Traders that want a spread betting provider offering good educational services may want to take a look at CMC Markets since the company got this year’s Best Online Education trophy.
MoneyAM is one of the leading UK financial websites, providing personal finance information, stock market data, business news, and market commentary. Once a year the company releases the MoneyAM Online Finance Awards to recognise the best companies acting in the finance world. Voting is cast from the company website and reflect the people’s choice.