Daily Spread Betting and Financial Market Round-up

Financial markets round-up
Wednesday December 05, 2007

Spread betting opportunities : Financial market update

Stocks rallied strongly on Wall Street following positive economic data. The actual data was somewhat mixed. On one hand, ADP employment change for November, non-farm productivity and data on factory orders were much stronger than the market had anticipated. On the other, data on non-manufacturing fell below market expectations. However, overall, the market interpreted this to mean that the economy was growing at a decent pace but not enough to undermine the potential for further cuts by the Federal Reserve Bank (FED). Hence, on the whole, interest rate expectations remain the key driving force for this market.

Equity gains were led by stocks in the technology sector where the Nasdaq Composite index was 1.78%, adding 46.53 points to close at 2666.36. The other major indices were not too far behind however, with the Dow Jones Industrial Average up 1.48%, adding 196.23 spread betting points to finish the trading session at 13444.96. The S&P500 index gained 22.22 points on Wednesday, a move of 1.52% to close the day at 1485.01

The FTSE100 outperformed the US equity indices with a gain of 2.83%, adding 178.6 points to close at 6493.8. Also in London, the techMARK index of technology shares gained 2.10% and the mid-cap FTSE250 index was up by 2.36%.

As in the US, hopes for a rate cut increased in the UK, following weaker than expected economic data. Rate-cut expectations helped rate-sensitive sectors such as housebuilders, with Barratt Developments gaining over 6% on the day. Continuing concerns about the likely fate of the Virgin deal left Northern Rock at the top of the pile of fallers for the trading session on Wednesday.

For those spread betting individual stocks, the major leaders and laggards for the London stock market are presented below:

FTSE 100 - winners

Taylor Wimpey [+8.40%]
DSG International [+6.06%]
Royal Bank of Scotland Group [+6.03%]
Barratt Developments [+6.01%]
Vedanta Resources [+5.40%]

FTSE 100 - losers

Northern Rock [-2.91%]
Yell Group [-2.19%]
Mitchells & Butlers [-2.12%]
Tesco [-0.88%]
Carphone Warehouse Group [-0.35%]

FTSE 250 - winners

Game Group [+15.79%]
COLT Telecom Group S.A. [+11.35%]
Quintain Estates & Development [+8.38%]
Abbot Group [+8.25%]
Derwent London [+7.68%]

FTSE 250 - losers

eaga [-3.72%]
Xchanging [-3.37%]
WSP Group [-3.23%]
Northern Foods [-2.25%]
Britvic [-2.02%]

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