Your Financial Spread Betting Update: European equities post gains amid cautious optimism

Financial spread betting and CFD trading expert Giles Watts, Head of Equities at City Index (http://www.cityindex.co.uk), looks at spread betting market activity as European equity markets pushed towards the week’s highs on 9th December:

“European equity markets pushed towards the week’s highs, encouraged by a late rally in the US and strength in Asian equities overnight. F100 reached 5837 in early trading as Miners, Banks and Insurers drove the index higher.

The DAX rose above the 7000 before pairing gains. Mining stocks were the play of the day as they eroded yesterday’s falls on higher commodity prices and a weaker dollar. Concern existed yesterday that a possible rate hike from China over the weekend could dampen global demand for metals, but investors seem more resilient this morning, citing any moderate rise in rates as a prudent step to cool any future overheating.

Positive sentiment remained over Obama’s extension of tax cuts, the move continued to buoy investor’s spirits as hope remains that such a move could prove a shot in the arm for the faltering US recovery.

In specific news Barclays bank was the best performing bank, trading back above 270p after recently being punished for its perceived exposure to the peripheral European nations. With the euro zone debt concerns moving away from the headlines at least for a day or two, investors were poised to pick up shares badly hurt recently that they perceive to now be cheap.

On the downside Smith and Nephew topped the lagers board retracing some of yesterdays bid spec gains. The stock had led the index yesterday after traders had cited bid rumours of around the £8.00 mark for the Health Equipment Company. Investors were excited as rumours circulated yesterday that American Venture Capitalists could be in the market for the company, but enthusiasm has waned and clients have taken profits quickly off the table today.

As mid morning approaches, investors will be keeping an eye on BOE decision, strongly expected to keep rates on hold. More unpredictable will be US jobless claims as 13.30 GMT. As ever investors will wish to see some solid numbers from the States, before they are convinced about buying further into any festive rally.”

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Giles Watts, City Index, Park House, 16 Finsbury Circus, London EC2M 7EB

This release was published on openPR.