Super Fitness Health BlogUK Futures Market Could Turn Bearish
Global stocks fell in recent financial spread trading activity as new doubts about Europe’s bailout package and worries over the outcome of a key vote in Greece overshadowed signs of an improving US labour market.
The ECB rate cut and a drop in US jobless claims helped feed a bid for riskier assets and drain safe-haven buying. Trading was volatile across asset classes as markets were rocked by headlines on Greece and comments from new ECB President Mario Draghi, who said the eurozone could enter a “mild recession” later this year.
Italian Prime Minister Silvio Berlusconi, who is on the verge of resigning, turned down an offer of funding from the International Monetary Fund, which has placed the country under supervision as it struggles with its debt mountain.
Looking at the UK Futures market, a recent City Index trading report suggested that, “After failing to clear 5,750, the FTSE 100 stock market index managed to creep below 5,501 & hit a low around 5,335-5,340. Right now the stock market index is looking bearish beneath 5,600 which has proved to be price resistance yet again.
“Staying under 5,445 may suggest that another leg down might be possible & this may take the stock market index down closer to the 5,200 mark. If the FTSE 100 index does continue to show weakness then we might even see the intermediate term course of the market turn bearish again. The stock market index will need to complete a move above 5,600 to negate this view.”
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