Chinese cash injection lifts spirits

In mid-morning trading the FTSE 100 is up over 20 points, as the Chinese cash injection lifts the market spirits.

The FTSE is following the Asian markets higher and briefly touched the 6600 level after the People’s Bank of China added liquidity to the interbank market, as concerns about a credit crunch have been circulating. The rapid growth of the Asian powerhouse isn’t what it used to be and a number of economists are worried the country is relying too heavily on cheap credit. This monetary intervention will buy Beijing some time for now at least.

Reporting season is in full swing as first major British bank Barclays reports its figures. The London-headquartered financial house revealed a slump in profits as the mis-selling of PPI continues to haunt them. BP is another company that can’t seem to get shot of the past; the oil giant has increased its estimate for the compensation claims from the Gulf of Mexico disaster by $1.4 billion. 

US index futures are a touch higher this morning. We are expecting the Dow to open at 15,550, up 30 points. Traders will remain cautious ahead of the two-day US Federal Reserve meeting which begins tonight (London time).

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by analysts

Een artikel zoeken

Form has failed to submit. Please contact IG directly.

  • Ik wens per e-mail informatie van IG Group bedrijven te ontvangen over handelsideeën en IG's producten en diensten.

Voor meer informatie over hoe wij uw gegevens mogelijk kunnen gebruiken, bekijkt u ons Privacy- en toegangsbeleid en onze privacy website.