UK GDP figures have shown a shrink of 0.2% over the final quarter of 2011 as the Eurozone debt crisis continues to pose problems for European economies, enabling spread betting traders more opportunities to profit from macroeconomic trends.
The UK economy shrunk by 0.2% in the final quarter of 2011, according to official figures released by the Office for National Statistics, which some analysts are suggesting could help spread betting traders identify alternative opportunities to profit from the markets.
The figures reflected a 0.9% growth in the economy through the year 2011, lower than some analysts expectations as a result of underlying uncertainty throughout the wider European and global economies.
While the shrink is potentially politically damaging, the effect for spread bettors is to create a more volatile trading climate, and to provide more opportunities for profiting on the short side from companies undermined by the result.
Conversely, traders can also take advantage of rebounding prices suppressed by the negative figures, to leverage the macroeconomic drag of a return to stable market prices in the future.
Some commentators have suggested that while public sector strikes and a significant fall in energy consumption over a mild winter have played a key role in the suppression of growth figures, the biggest threat to a second UK recession in recent years remains the unresolved Eurozone crisis, which is continuing to undermine market confidence globally.
Prime Minister Cameron and German Chancellor Angela Merkel have spoke in recent days of the need for more sweeping, decisive action to attempt to draw a line under the ongoing Eurozone crisis, as European leaders continue to press for a definitive solution.