Stock Market News Overview – 11th July 2012
Stock Market Overview Wednesday 11th July – (Brad Styles – Forex-FX-4x).
Market sentiment update - European stock markets are yet to gain a solid directional bias by mid-day today. Spanish stocks have seen a rally following fresh austerity measures. Trading is thin and market participants seem to be reticent to commit to positions at present with so much uncertainty in the air.
One exception is the Spanish IBEX 35 index which is outperforming its European neighbours today and has seen an advance of +73.30 at present and +1.09%. This comes as Prime Minister Mariano Rajoy today made an announcement to the market that 65 billion euros of fresh austerity measures would be rolled out to hit targets in this area; this includes a 3-point rise for VAT (Value Added Tax). This news had a positive impact on risk appetite hence the rise in Spanish stocks. Borrowing costs have dropped on Wednesday as the yield on 10-year government bonds fell to 6.81%. Yields have moved above the 7% level recently which is seen as unsustainable.
UK FTSE 100 trades above Ichimoku cloud
Frankfurt’s DAX index is up +28.90 and +0.45%, the London FTSE (see chart above) is down -6.09 and -0.11% and the CAC in Paris is trading down -9.38 and -0.30%.
U.S. stock index futures have moved higher today; the benchmark S&P 500 index could be set to break a negative trend comprising four daily consecutive moves to the downside ahead of the the Federal Open Market Committee’s meeting minutes from June.