Stock Market Trading: FTSE 100 Pushes to New 6 Month Highs

Last Updated on Tuesday, 21 February 2012 01:25 Written by tateskate Tuesday, 21 February 2012 01:25

Stock markets have been given a boost following the news that China has eased the cash reserves that the People’s Bank of China is required to hold. This led to a big jump on the FTSE 100 spread trading market and the UK stock market hit 5970.

China continues to be a big driver behind market sentiment, the world’s second biggest economy remains critical to the future of global growth and expectations.

The authorities in China are as desperate as everyone else to try and avoid a major meltdown or ‘hard landing’ of their economy, so actions like this should help in avoiding a crash. Mining and energy stocks have been given the biggest boost. The FTSE 100 is pushing to new highs for 2012 also new six month highs.

European stock markets are also being boosted by the prospect of the Greek bailout finally being approved, that not happening was one of the biggest threats to the current stock market rally. With this hurdle out of the way the stock markets could continue their grind higher. However, there are still considerable headwinds going into the next few months.

For now though, the increased risk taking in the equity markets is also filtering through to the forex spread trading markets. The result is a weakening of both the dollar and the Japanese yen as these safe-haven currencies become less tempting.

Looking at the spread trading charts, the newly injected optimism in the markets has seen the euro push higher against the dollar. If you are trading the markets, note that Contracts for Difference (CFDs) and Financial Spread Trading both involve a high level of risk to your investment capital, the margin on these investment products means that you may lose more than the funds which you originally committed.

If you are investing via Financial Spread Trading and CFDs, please ensure you only invest using money that you can afford to lose; before you start trading make sure that you recognise the risks involved. These products may not always be suited to your trading requirements. Where you feel it is necessary, obtain impartial investment advice.