Simon Denham, Capital Spreads

Morning commentary: Capital Spreads

Simon Denham is Chief Executive Officer of Capital Spreads’ AIM-listed parent company, London Capital Group. He founded Capital Spreads in 2003 having previously run the options and derivatives desk at another large spread betting firm. During his 25 years in the City he has held senior positions in a number of banks, including Christiania Bank, Bank of Nova Scotia and the Union Bank of Finland, and has built-up in depth experience of the financial markets.

Read more of Simon’s commentary at www.capitalspreads.com

World’s biggest economy now has to swallow the bitter spending cut pill

13 April 2011
As the markets and risk assets bounce Obama prepares for his plans to cut the US deficit. Something that the current administration has been reluctant to address the world’s biggest economy now has to swallow the bitter spending cut pill.

The whiff of a little risk causes selling across the board

12 April 2011
Just as all the risk markets have been heading higher in recent days, the whiff of a little risk off causing selling across the board. The FTSE and Dow are dangerously near to forming major double tops as they fail to get beyond their 2011 highs at a second attempt.

Nothing new – but perhaps thats what our banking industry needs

11 April 2011
The Independent Commission on Banking have released their interim report and on reading the headlines there really is little in the way of recommendations for swinging changes to the banking sector. There is already a bit of relief within the sector

Equity markets continue to brush off the bad news

8 April 2011
The equity markets continue to brush off the bad news and this morning everything is going north from the FTSE to the price of oil. Investors remain unconcerned with what’s going on in the periphery of the eurozone and the fact that the ECB has taken...

So the domino effect takes out Portugal

7 April 2011
So the domino effect takes out Portugal now and you can almost hear the financial markets saying “we told you so”. The political fallout didn’t help proceedings after the previous vote on austerity led to the resignation of the Portuguese Prime Minister...

FTSE carries on regardless

6 April 2011
The FTSE seems to be carrying on regardless even though oil remains firmly above $120 a barrel, but this time it’s metal prices that are driving mining stocks higher and there’s even a little bit of help from the banking sector this morning.

Has the rebound gone ‘too far, too fast’?

5 April 2011
A flat session from US markets last night means that we’re flat on the open of the FTSE this morning. Bulls just seem slightly tentative at these levels with the Dow pushing at its thirty four month high and now, just as investors saw the correction to the downside go too far, they are questioning whether the rebound has just gone “too far, too fast”.

Investors contemplating the prospect of higher interest rates

4 April 2011
Investors now have to contemplate the prospect of higher interest rates, at least in Europe over the near term as this week the ECB are expected to hike their base rate from 1.00% to 1.25%. The BOE on the other hand is due hold fire as things in the UK continue to look rather fragile.

Portugal to follow the route of Greece and Ireland?

1 April 2011
Things don't look good for the eurozone yet still investors seem content with where the single currency is and that ultimately the world's largest economic area will be able to muddle through.

A quarter many would rather forget

31 March 2011
As the final trading session of the quarter gets underway for many it’ll be a quarter they would rather forget. The re-emergence of the eurozone debt crisis got us off to a shaky start but didn’t deter investors from pushing onto new highs, in particular there was extravagant strength from US and many European markets namely the Dax and the Cac.

Bulls seem intent on sending markets back to their 2011 highs

30 March 2011
The FTSE just popped higher towards the close last night and once again it went against the grain when anyone would have thought that the news flow would have been a prerequisite of a sell off.

Investors reflect on what has been rather a volatile few weeks

29 March 2011
Markets got off to a slow start yesterday and drifted sideways as there was little in the way of any economic data to get stuck into. Gold prices were spooked somewhat by the end of QE 2 drawing nearer and there was a bit of profit taking in the precious metal which fed through to the equity market.

Violent demonstrations tarnish arguments for reduction in government spending

28 March 2011
The violent demonstrations at the week end have tarnished the arguments for a reduction in the government spending cuts with the coalition remaining steadfast in sticking to its plans.

What a difference a week makes

25 March 2011
The FTSE’s strength yesterday took a lot of people by surprise particularly after the abysmal retail sales data and oddly enough a spike in gold and crude prices also didn’t perturb buyers from flooding back into the market.

Mixed reviews from this morning’s headlines following Osborne’s budget

24 March 2011
Mixed reviews from this morning’s headlines following Osborne’s budget with many welcoming his measures to try and revive the economy (or is it to prevent another recession) but others claiming that when he gives with one hand he takes with the other.