Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
News

Stocks rebound as tensions steady

European equity markets bounced back this morning after the major sell-off we witnessed yesterday. 

Tensions surrounding North Korea are still running high, but as far as traders are concerned, no new negative news is good news.

In tense situations like this, traders are cautious about buying back into the market, and the positive move this morning feels more like short covering than renewed bullish sentiment. European equity markets have been losing ground since the start of the summer, and the downward trend is still in place. The bounce back today could well attract a fresh wave of selling and political uncertainty is looming over the equity markets.

There is little change in the GBP/USD today and the latest lending figures from the UK showed a decline in the amount of money borrowed in July. Consumer credit fell to £1.17 billion from £1.45 billion. Mortgage approvals increased 3371, but the amount of money lent declined by £530 million.

The pound lost ground versus the US dollar for most of the month, but we are seeing a bit of a recovery. The US jobs report on Friday will be closely watched by traders, and it will give us an indication of what the Federal Reserve’s next move will be.   

We are anticipating the Dow Jones to open 35 points higher at 21,900, and we are calling the S&P 500 up 3 at 2449.

At 1.15pm the US will announce the ADP employment report, and traders are anticipating 185,000 jobs to have been added in August, and that would be an improvement on the 178,000 that were added in July. The US will reveal the second-quarter growth figures at 1.30pm, and the consensus is for a reading of 2.7%.
 

CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.


Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.