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FTSE 100 gains being capped by banks: Testing 5500 PDF Print E-mail
Written by Will Peters   
Friday, 10 September 2010 09:36

Spread betting firm Capital Spreads comments on the state of the FTSE 100 this morning.



The FTSE 100 (INDEXFTSE:.FTSE) is 0.16% lower at 5,485.12 at 9:44AM.

A lackluster performance by the US markets overnight has left the FTSE 100 in a holding pattern this morning.

Bulls have been hampered by the banking sector which is showing a reluctance to push on from yesterday's gains.

Simon Denham at spread betting providers Capital Spreads gives the following verdict into the FTSE 100:

"We are a little lower so far this morning but only by a smidgen as the concerns over European banks and threats of double dip are being swept under the carpet.

"The bulls continue to attempt to drive us higher and the FTSE 100 is testing 5500 having been dipping in and out of positive territory.

"Despite the bulls’ best efforts, gains are being capped by the banks with weakness for European banks in particular as they fear that Deutsche Bank needs go cap in hand to investors.

"This would be no bad thing as there should be plenty of appetite from the market should the go ahead with a fund raising, but as long as rumours circulate their share price will remain under pressure until the rumours are either substantiated or disproved.

"As mentioned yesterday the FTSE is leading the way higher meanwhile other major benchmarks, namely the Dax and the Dow, are lagging having not breached their July highs yet.

"Equity markets seem to be so nearly picking themselves out of the gutter, but sentiment is holding them back for now and the recent highs for the Dow do look to be a bridge too far for now."



Last Updated on Friday, 10 September 2010 09:38
 

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