This week’s financial spread betting update is now available and can be read by clicking here.
This week has begun in a similar fashion to last week with further selling of stocks and continued weakness overall for commodities. Gold has already soared to new highs having crossed the $1700 level already this morning. The December contract has been as high as $1718 already, a new all time high. Silver has also recovered after the heavy selling seen late last week and is now testing the $40 level once again.
Stock indexes are down to the lows seen last week, which are the lowest levels seen for stocks since November last year. We’ve written previously about the large head and shoulders top on the S&P 500, which suggested a target of 1125 and that level may still be reached. The long-term trend is down now for global stock indexes.
The week ahead promises to be interesting as we are already seeing Central Banks act to intervene and may see more of that this week. Tomorrow is the FOMC meeting which based on what has happened over the past couple of weeks may see an announcement that QE3 is on it’s way. Whether such a move can arrest the decline of stocks remains to be seen but it will very likely be to the detriment of the US dollar.
This week’s financial spread betting update begins with:
In last week’s update we wrote “It is in reality a joke that the US still holds this status as their debt levels are already beyond the point of no return and the fact that the US still holds the triple A rating shows how much of a joke the rating agencies are.” This weekend has seen the S&P downgrade the US from their triple AAA rating for the first time in history. This may have a considerable effect on global markets over the coming months and other rating agencies will likely follow suit and possibly begin downgrading other Countries as well………continue reading by clicking here