Wednesday, October 17, 2012

How Will the Q3 Earnings Season Affect Your City Index Spread Betting Strategy?

 

City Index

LONDON--(Marketwire - October 17, 2012) -  Spread betting strategists will be keeping their eyes on the big market movers this week, as one of world's biggest investment banks, Goldman Sachs, announces their Q3 earnings.

The announcement follows impressive earnings from JP Morgan last week and Citigroup yesterday (Monday 15th October), which has led to positive anticipation ahead of Goldman Sachs' respective earnings.

It's good news for other banks who will announce Q3 earnings this week, according to KBW analyst Frederick Cannon who said of JP Morgan's earnings:

"Investment banking provided stronger-than-expected results this quarter, with beats in both fees and trading. Fixed income trading came in at $3.7 billion versus our expectations for $3.5 billion, up 7% linked quarter and 33% year over year."

Considerable EPS increase expected for Goldman Sachs

This is good news for Goldman Sachs, continues Frederick:

"As a whole, we expect the strong investment banking revenues this quarter to be a positive for both Goldman Sachs and Morgan Stanley," Cannon wrote.

Goldman Sachs will be looking to woo investors with the bank expected to report a considerable bounce back in earnings.

A Reuters consensus estimates that the bank's Earnings Per Share (EPS) will return from a net loss of 84 cents just one year ago to a profit of $2.12.

How will you spread bet Goldman Sachs shares?

Let's say you decide to place a £10 spread bet to buy Goldman Sachs in the expectation that their share price will rally over the next few days.

You would stand to make £10 on every cent the bank's shares price increases above your entry point.

However, for every cent the shares price moves falls below your entry point, you'd stand to lose £10.

As spread betting is leveraged, you could lose more than your initial deposit. That's why you should always consider risk management tools such as a Guaranteed Stop Loss Order.

City Index offers a range of spread betting tutorials, features, tips and market analysis to keep you up to speed during the crunch Q3 earnings reports.

Spread betting is a leveraged product which can result in losses greater than your initial deposit. Ensure you fully understand the risks.

 

About City Index:

City Index provides access to a wide range of instruments including margined foreign exchange, CFDs and, in the UK, financial spread betting.

Contact:

Joshua Raymond

City Index

+44(0)20-7107-7002

joshua.raymond@cityindex.co.uk





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