FTSE 100 bounces back, despite plunging in the morning more that 1% on the GDP data from the Office for National Statistics.
It was a bumpy but upwards ride on the stock market today and day traders had another great day of volatility.
Are there any positives to take from today’s markets performances? The answer is more complicated that just a simple Yes or No as FTSE100 companies make most of their money abroad and with the rise of consumer confidence in the US it is no surprise that major stock markets managed to bounce back.
Unfortunately, there are more negatives than positives to take from today’s session as despite US markets leading the way the possibility of the double bottom recession for the UK is still in the air and small business will struggle in the short term with the lack of credit and the mountain of government debt.
On the positive note current market volatility will benefit day traders who do their market research and have understanding of the trading options available in the UK, including financial spread betting, CFD (Contracts For Difference), forex, futures and options, and, of course, share dealing.
It is vital for the retail investors and traders to understand the fundamental difference to make the most out of the current market conditions.