Special Feature
Angus Campbell is Head of Market Analysis at Capital Spreads, a trading name of London Capital Group (LCG). He graduated from the University of Exeter with BA Hons in Business and Accounting, and began working in the City in 2001. His expertise in all matters to do with the financial markets has led to him making regular appearances on television channels including Bloomberg, CNBC, CNN, BBC and Sky News and he is frequently quoted in major newspaper and online publications.
CAPiTAL SPREADS CLiENT DEMAND FoR CuRRENCiES RETuRNS AS VoLATiLiTY iN iNDiCES DiVES BY ANguS CAMPBELL
To say that the start of the year for global equity markets has been impressive would be something of an understatement. With the FTSE 100 at multi-year highs, the FTSE 250 forging ahead to record highs and across the pond, the Dow Jones also making it to new record highs one would have expected clients to remain resolutely bullish on the indices. Who’d also have thought that not even five years on from the banking crisis, the words “record highs” would be passing our lips, especially given the challenging economic backdrop? Amazing really. Interestingly, throughout last summer, autumn and into winter with the markets grinding higher, it wasn’t until the New Year that client behaviour at Capital Spreads really changed. It was as if they couldn’t handle the breakout to the upside in indices and so migrated back to trade currencies and there’s probably good reason for such a change in behaviour. Clients will more often than not oppose the trend hoping to catch a top or bottom in the market. In the case of the indices, bar the odd little retracement, they’ve just kept on going north and a lot of clients have been swimming against the tide with a few fingers being burnt in the process...
April 2013
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