Threat of New Banking Crisis Sees Investors Trade with Caution

LONDON, October 7, 2011 /PRNewswire/ --

4^th October 2011 marked the lowest close for the FTSE 100 since June 2010. Deep losses in mining, banking and insurance stocks dragged the index down as investors fled risky stocks in fear of a repeat banking crisis.

Joshua Raymond, spread betting expert and Chief Market Strategist at City Index (http://www.cityindex.co.uk/), considers the situation: "The key here is that the last few months bear all the same hallmarks and signs that preceded the previous banking crisis in 2008 and with the deep losses suffered by major banks across the world still living fresh in the memory of investors today, who can blame investors for selling their bank holdings in the midst of a potential new banking crisis?"

Mr Raymond continues: "Investors typically trade on two fronts, fear or greed, and it's clear that fear is winning outright at the moment, particularly when it comes to a potential Greek default and the consequential contagion effects that may come at a time when finance ministers continue to shy away from definitive and credible solutions to combat the problem."

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As a group, we transact in excess of 1.5 million trades every month in over 50 countries. We provide access to a wide range of instruments including margined foreign exchange, CFD trading and, in the UK, spread betting.

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