China announced today that it is seriously looking at deeper involvement within the Eurozone by contributing to the EFSF via the IMF.

Good news for Europe as if China does come on board, Europe should be able to gather a sufficient firewall to appease markets and to guard against possible defaults of Greece and potentially Portugal.

Glencore and Xstrata have also announced that they are close to a merger deal, which could be revolutionary for the mining industry as broker and miner come together.

CFDs, FX and Spread Trading are leveraged products and carry a high level of risk to your capital. It is possible to lose more than your initial investment. These products may not be suitable for all investors, therefore ensure you understand the risks involved and seek independent advice if necessary.

Market review by Spreadex.

Content on Trading-Day.co.uk should not be construed in any circumstances as a recommendation to buy or sell any security or other financial instrument. Neither Trading-Day.co.uk nor any contributing author/company warrant that the material is accurate, complete, not misleading, or fit for the purpose which it is intended and therefore it should not be relied upon. Content is provided for information purposes only and should not be relied upon as investment advice.

January manufacturing PMI data from China, Europe and the UK showed some signs of recovery and this has helped bolster these positives.

As is normal when investors become more confident financials and basic resource stocks have benefited the most.

The biggest riser on the FTSE 100 today is interdealer broker ICAP after the company stated that its fiscal year results would be at the upper end of expectations.

Banks are also higher on the basis that no news is good news out of Europe with, Barclays, Lloyds and RBS all higher.

Industrial stocks are also enjoying good gains led higher by Weir Group and IMI as the chill winds of winter start to abate in the manufacturing sector.

One of yesterday’s biggest risers ARM Holdings is amongst the poorer performers today as spread trading account holders take some profit given the stock is trading near the top end of its recent range.

US markets opened significantly higher today on the back of the firmer tone in Europe.

Company earnings have also helped sentiment with Chrysler posting a rise in January car sales of 44%, however on the flip side of that Ford announced an increase of 7.4% sales, below estimates of 9.5%

In IPO news Facebook is expected to file the initial paperwork for a $5bn initial public offering.

As was widely expected, the EU blocked the NYSE Euronext Deutsche Boerse merger, however the effect on the share price was negligible.

US ADP payrolls numbers did nothing to dent this sentiment coming in at the bottom end of expectations at 170k, while December’s blow out month at 325k was revised only slightly lower to 292k.

The January ISM manufacturing data came in slightly below expectations at 54.1, however the prices paid component jumped sharply to 55.5 from a previous 47.5.

US construction spending blew away analyst expectations for December, coming in at 1.5%, however November’s numbers were revised sharply lower from 1.2% to 0.4%.

In FX spread trading, the US dollar has slid back today with the commodity currencies being the best performers, with the Norwegian Krone, Aussie and New Zealand dollar leading the way higher.

Even the euro, which had a poor day yesterday, has had a positive day but continues to struggle near the 1.3200 level against the US dollar.

The pound, on the other hand continues to remain resilient in the face of a lot of concern about further QE, after manufacturing PMI confounded expectations by bouncing back strongly in January, coming in at 52.1, well above consensus of 50.

It could also be argued that the strong reading could give MPC members pause for thought when it comes to considering further QE at next week’s Bank of England meeting.

Oil prices continue to find support against a backdrop of Middle East uncertainty as well as optimism about the Chinese economy, after the latest official manufacturing PMI data beat expectations to the upside.

Brent prices still continue to outperform US prices but also find it difficult to sustain levels much beyond $113.

Copper prices, not surprisingly given their sensitivity to Chinese economic data have had a good day pulling back some of the losses from yesterday.

By Michael Hewson, Market Analyst, CMC Markets.

CFDs, FX and Spread Trading are leveraged products and carry a high level of risk to your capital. It is possible to lose more than your initial investment. These products may not be suitable for all investors, therefore ensure you understand the risks involved and seek independent advice if necessary.

Please remember CMC Markets provide an execution-only service. Any of the above comments above, our research and charting tools are indicative and provided for information purpose and must not be relied upon as investment advice.

Each of the last two weeks has cost the pound roughly a cent against the Kiwi, but its opening level in London this Monday was essentially unchanged from 12 January.

The NZ dollar spread trading markets did fractionally better than its Australian and Canadian cousins, helped by a couple of New Zealand economic statistics.

Credit card spending in 2011 was up by 5.9% compared with the previous year – double the increase predicted by analysts.

Business NZ’s purchasing managers’ index was five points higher in December at 51.9; the move above 50 means business activity is growing again.

The trade figures were good too, turning November’s NZ$307 million deficit into a NZ$338 million surplus in December.

Contracts for Difference (CFDs), margined forex and financial spread trading come with high levels of risk to your investment. The leverage on these products means that you can lose more than your initial investment capital. When trading through these products, note that they may not be suitable for all types of investor. Ensure you only invest using funds you can afford to lose. Always ensure you fully understand the risks. Where appropriate, obtain independent advice.

Weekly update by www.moneycorp.com, Foreign Exchange since 1979.

Having seen markets hold on to the gains from the previous two weeks on the back of EU officials promises that a deal was close; the lack of any progress over the weekend has seen the markets deliver their verdict. The FTSE hitting its lowest levels in nearly two weeks.

Friction between Germany and Greece over increased budget oversight hasn’t helped sentiment either.

Financials have borne the brunt of today’s moves lower with French banks being hit particularly hard on the news that France will be implementing a unilateral transaction tax by Q3 of this year.

This comes as politicians again choose to tinker around the edges rather than deal with the actual issues.

UK banks are also lower with Lloyds, Barclays and Royal Bank of Scotland at the bottom of the FTSE 100.

Basic resource stocks have also slid back sharply as shares spread trading investors take profits on the gains seen so far on what has been a fairly positive month for European markets.

The more defensive sectors have been the better performers with pharmaceutical stocks and utility stocks outperforming the rest of the index, with National Grid, International Power and Glaxo the better performers.

US markets took their cues from European markets opening sharply lower, though the bias had already been slightly lower after Friday’s disappointed market reaction to the latest US GDP numbers.

Economic data for December for personal spending and income showed that while wages were rising slightly above expectations, personal spending was flat, suggesting that despite the recent improvement in economic data, the US consumer was remaining cautious.

Biggest fallers were, not unexpectedly JP Morgan and Bank of America, as markets digested a downgrade of BoA from “buy” to “neutral” from sector peer Goldman Sachs. On the plus side Citigroup and Morgan Stanley were on the receiving end of upgrades to “buy”.

In FX spread trading, the US dollar has bounced back from last week’s late losses with only the Japanese yen performing better than the greenback.

The single currency has slid back sharply despite Italy managing to get away €7.5bn worth of 5 and 10 year bonds, albeit at lower yields, in the wake of last Friday’s long awaited Fitch downgrade.

The lack of any news on a Greek PSI deal has also seen an unwinding of some of the recent gains in the euro, as markets grow sceptical that EU leaders are capable of anything other than spin.

Tensions between Greece and Germany over increased budget oversight with respect to a second bailout haven’t helped either. Fears over Portugal and the sustainability of its finances have also increased after the yield curve inverted with the 10 year yield above 17% to a post euro high.

The Japanese yen has also risen sharply to its highest levels since October, as US 10 year treasury yields have slid sharply, close to one month lows.

Traders are also watching the Swiss National Bank as the Swiss franc edges closer to the 1.2000 peg, trading below 1.2050 for the first time in over three months.

Commodity prices have slid back across the board as the US dollar has rebounded with gold and silver prices.

Crude oil prices have tracked equities lower but not by as much as you would think given the on-going worries about the situation in the Middle East. Iran’s threat to pre-empt Europe’s blockade has lent some support to prices even though prices are lower.

Copper prices have gapped lower today dragged lower by concerns that Chinese demand may have peaked in the short term. There is also concern that today’s EU leaders summit could well end as so many before it, to quote Shakespeare “full of sound and fury, but signifying nothing”.

By Michael Hewson, Market Analyst, CMC Markets.

CFDs, FX and Spread Trading are leveraged products and carry a high level of risk to your capital. It is possible to lose more than your initial investment. These products may not be suitable for all investors, therefore ensure you understand the risks involved and seek independent advice if necessary.

Please remember CMC Markets provide an execution-only service. Any of the above comments above, our research and charting tools are indicative and provided for information purpose and must not be relied upon as investment advice.

US markets are up strongly pre-market in European trading as they carry on the momentum from the gains experienced near the close last night.

Durable goods orders in the states were also better than expected, adding to the current bullish mood.

There are still fundamental problems in the Eurozone, so spread trading investors should be cautious over the rally we have been witnessing over the previous two weeks.

CFDs, FX and Spread Trading are leveraged products and carry a high level of risk to your capital. It is possible to lose more than your initial investment. These products may not be suitable for all investors, therefore ensure you understand the risks involved and seek independent advice if necessary.

Market review by Spreadex.

Content on Trading-Day.co.uk should not be construed in any circumstances as a recommendation to buy or sell any security or other financial instrument. Neither Trading-Day.co.uk nor any contributing author/company warrant that the material is accurate, complete, not misleading, or fit for the purpose which it is intended and therefore it should not be relied upon. Content is provided for information purposes only and should not be relied upon as investment advice.

The two safe-haven favourites had to sit idly by while forex spread trading investors revived their enthusiasm for the euro.

Despite Standard & Poor’s lowering of the credit ratings of France, Italy and half a dozen other Eurozone countries the previous Friday, spread trading investors were inclined to forgive the downgrade.

The scenario is quite reminiscent of a similar misfortune to the dollar back in August, of which they also forgave

Evidence of US economic performance was thin on the ground and not particularly coherent.

Federal Reserve manufacturing indices in the New York and Philadelphia districts pointed in opposite directions, with improvement for the former and a fall for the latter.

Housing starts fell, while home-builders’ optimism improved slightly.

This week, investors get their first peek at fourth quarter gross domestic product, expected to show annualised growth of 3.0%.

Contracts for Difference (CFDs), margined forex and financial spread trading come with high levels of risk to your investment. The leverage on these products means that you can lose more than your initial investment capital. When trading through these products, note that they may not be suitable for all types of investor. Ensure you only invest using funds you can afford to lose. Always ensure you fully understand the risks. Where appropriate, obtain independent advice.

Weekly update by www.moneycorp.com, Foreign Exchange since 1979.

With talks between private bond holders and Greece over Greek debt haircuts ongoing, and EU finance ministers meeting today in Brussels, we could see a headline driven market today as investors react to the rhetoric out of Athens and Brussels.

The rhetoric out of Athens however does exude a positive spin to talks and so as such, the markets are optimistic that despite the delay, a deal should be struck, allowing the indebted nation to secure the next tranche of bailout funds.

Charles Dallara, the Managing Director of the Institute of International Finance and representing private bond holders, said that they have made their maximum offer, and it was now up to the IMF and EU to accept the deal.

For now, the FTSE 100 continues to see positive price action though resistance is nearing and a close above strong resistance at 5820 could re-open up the 6000 level once again.

All three UK heavyweight stock sectors traded into positive territory, with oil, miners and banks all seeing gains of between 0.2% and 0.7% in early trading and outperforming broader European trade as investors recycle funds into cyclical stock sectors.

Shares in Royal Bank of Scotland led the charge higher in the FTSE 100, with prices rallying 3% to trade near new 5 month highs of around 29p, closely followed by gains in miner Vedanta Resources and oil firm Essar Energy.

BAE Systems shares saw higher demand thanks to an upgrade in stance from Barclays, who raised their view on the defence firms shares to overweight from neutral.

Retailer Dixon’s Retail also saw a positive trading start to the week, with shares leaping 7.7%, with shares benefiting from Friday’s upgrade in view from Morgan Stanley, who upgraded their view to overweight from underweight and doubled their price target to 16p from 8p.

On the downside to trading were shares of Weir Group, which lost 3% as investors reacted to a bearish downgrade in stance from JP Morgan. This comes hot on the heels of a weak trade on Friday for the company in reaction to growth fears in the shale industry.

JP Morgan cut their view on the stock to neutral from overweight, citing uncertainty over near term development in demand for fracking equipment given the low natural gas price in the US and high gas inventories.

There is a lack of economic data due out today, and so the markets are likely to be headline driven, with shares spread trading investors reacting to comments out of Brussels and Athens.

CFD trading and spread trading carries a high level of risk to your capital with the possibility of losing more than your initial investment and may not be suitable for all investors. Ensure you fully understand the risks involved and seek independent advice if necessary.

Market review by Joshua Raymond, Market Strategist, City Index.

This material should not be construed in any circumstances as a recommendation to buy or sell any security or other financial instrument. Neither Trading-Day.co.uk nor City Index warrants that the material is accurate, complete, not misleading, or fit for the purpose which it is intended and it should not be relied upon as such. This content is provided for information purposes and must not be relied upon as investment advice.

There was nothing particularly distinctive about any of the trio: it was just that spread trading investors were stampeding towards the currencies and other investments that would, in their opinion, benefit most from a solution to the Euroland sovereign debt crisis.

Statistics from the Australian economy were few and didn’t bring much to the party.

November’s new home sales figure was the only obviously positive number, rising by 6.8% in November.

The number of building permits issued during that same month was either good, if you looked at the 8.4% monthly increase, or bad if instead you concentrated on the -18.9% annual decrease.

Retail sales were unchanged on the month; a bad signal to those who had expected growth, but a relief to investors who had feared a decline.

Contracts for Difference (CFDs), margined forex and financial spread trading come with high levels of risk to your investment. The leverage on these products means that you can lose more than your initial investment capital. When trading through these products, note that they may not be suitable for all types of investor. Ensure you only invest using funds you can afford to lose. Always ensure you fully understand the risks. Where appropriate, obtain independent advice.

Weekly update by www.moneycorp.com, Foreign Exchange since 1979.

Furthermore, it has also raised expectations in some quarters that there may be a small easing of policy in the form of a reserve requirements cut ahead of Chinese New Year next week.

Sentiment also got a boost from better than expected German ZEW data which rose at its fastest rate ever recorded, but it still remains firmly in negative territory.

This has seen mining stocks leading the way with Rio Tinto at the top of the pile, followed by commodities trader Glencore.

Financials have had a broadly mixed day with Royal Bank of Scotland having a good day after announcing the sale of its aviation business for around £4bn, while HSBC is also higher.

On the downside Indian energy giant Essar Energy has plunged after having a tax deferment ruling in the Gujarat High Court go against them.

Insurers have had a mixed time of it with both Admiral and Royal Sun Alliance both lower, despite RSA getting a “buy” rating from UBS.

US markets opened higher today, on the back of firmer European markets as well as the better than expected Empire manufacturing data for January.

Financials have underperformed after poor earnings from Citigroup showed that Q4 profit fell 11% from a year ago.

JP Morgan is leading the fallers in the Dow amongst the financials as this sector continues to remain under pressure.

The US dollar has slid back sharply today with the commodity currencies once again outperforming, with the Australian and New Zealand dollar leading the way, on the back of the China data.

The single currency has had a good day after solid short term bond auctions for Spanish and EFSF bonds.

It is likely that this is probably more to do with the availability of cheap ECB money being used to buy higher yielding government bills, than any renewed confidence in the ability of EU leaders to resolve the debt crisis.

A bigger test will come later this week with the longer term auctions of French and Spanish debt as well as Italian bonds later this month.

The pound has underperformed today after the latest UK inflation data showed a sharp fall to 4.2%, reinforcing expectations that the Bank of England will add further measures to stimulate the economy at its February meeting.

Copper prices pushed to their highest levels since early September after Chinese data came in ahead of expectations, boosting market hopes that the demand for the red metal would continue to remain robust, going forward.

The industrial production figures were especially encouraging, coming in above expectations of 12.3% at 12.8%.

It’s been a tale of two crude prices with US crude prices higher on the better than expected US empire manufacturing data for January, while Brent prices have slid back despite concerns about an Iranian embargo.

Gold prices continue to find support and looks set to test a key resistance level, just above $1,670, resistance from the all-time highs at $1,920 and the 55 day MA.

By Michael Hewson, Market Analyst, CMC Markets.

CFDs, FX and Spread Trading are leveraged products and carry a high level of risk to your capital. It is possible to lose more than your initial investment. These products may not be suitable for all investors, therefore ensure you understand the risks involved and seek independent advice if necessary.

Please remember CMC Markets provide an execution-only service. Any of the above comments above, our research and charting tools are indicative and provided for information purpose and must not be relied upon as investment advice.

There was no clear reason for the relative popularity of the Kiwi and its one-cent advance against sterling was less than earth-shattering.

Nevertheless, it was the NZ dollar’s second consecutive week in the number three slot.

Perhaps it worked to the Kiwi’s favour that there were no New Zealand economic data whatsoever during the week, on the basis that no news is good news.

If past performance is any guide to future performance (and it often is, despite the wealth warnings on financial products) the dearth of New Zealand statistics could mean another positive week ahead for the Kiwi.

Contracts for Difference (CFDs), margined forex and financial spread trading come with high levels of risk to your investment. The leverage on these products means that you can lose more than your initial investment capital. When trading through these products, note that they may not be suitable for all types of investor. Ensure you only invest using funds you can afford to lose. Always ensure you fully understand the risks. Where appropriate, obtain independent advice.

Weekly update by www.moneycorp.com, Foreign Exchange since 1979.