FTSE 100 opened up 20 pts at 5442.8 after losing its gains from yesterday morning

<p>FTSE 100 opened up 20 pts at 5442.8 after losing its gains from yesterday morning as the boost to equity markets from the Spanish €100bn […]</p>

The video cannot be shown at the moment. Please try again later.

  • FTSE 100 opened up 20 pts at 5442.8 after losing its gains from yesterday morning as the boost to equity markets from the Spanish €100bn bailout proved only to be temporary.
  • Germany’s DAX is pretty much flat at 6141 as is France’s CAC 3052.
  • Over in the US the Dow Jones Industrial Average closed down over 1% or 142 pts at 12411 with early risers such as Bank of America and JP Morgan ending up among the biggest losers.
  • The Nikkei was also down 1% on the back of risk aversion strengthening the Yen which in turn negatively affects Japan’s equities. This is all highly reflective of how the Spanish banking bailout has done very little to alleviate investors underlying concerns about the state of eurozone economics, especially now that larger eurozone members are being hit the hardest.
  • Resultantly Spain’s 10 year borrowing cost has risen nearly 30 basis points to 6.5%. Short-term solutions are being seen for what they are and it’s going to take some policies with real meat to show that politicians have moved on from infighting to create a solid long-term plan.
  • Unsurprisingly the UK companies taking some of the biggest hits were the banks with RBS Lloyds and Barclays falling 2, 0.7 and 1.8% respectively and the British arm of Santander bank lost 1.2% after having its rating cut from A+ to A.
  • The biggest loser, however, was tech company ARM holdings losing 3% and top of the league today is insurance company Admiral group up 2%.
  • UK manufacturing production data is the only big figure coming out today but other than that expect the limelight to shift back to Greece as their election this Sunday looms.

See the City Index Economic Calendar and Companies Reporting Dates page for latest economic news and company events that are likely to impact the markets today.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.