Greater London, England -- (SBWire) -- 10/26/2010 -- Giles Watts, Head of Equities at CFD trading provider City Index (http://www.cityindex.co.uk) commented:
"Global equities eroded early session gains after absorbing a glut of data and comments from Bernanke. After a volatile week, with much to digest clients urged on the side of caution and reduced positions in equities and futures. The day had started positively after bumper numbers from Google last night gave overnight markets a boost, but the sentiment turned cautious as investors waited on comments from Bernanke. Despite indicating another round of monetary easing was imminent, markets failed to consolidate as later data suggested consumer sentiment in the US fell in October.
In London, Insurers and Miners weighed on the UK index, as HSBA pulled out of its Ned bank purchase, hitting Old Mutual, dragging it lower by 5%. Other insurers suffered as Citigroup downgraded the sector. Mining stocks also suffered as clients sought to cash in on recent gains before the weekend. Respite was sought ironically in UK banks which recovered some of their recent losses, as concerns over capitalisation rescinded, for now.
It seems that QE2 is firmly taking central stage in investors’ minds, and until such a time that policy is confirmed here or in the States, the market could trend in a state of flux. Any prolonged uncertainty however will not serve the markets well and will surely exacerbate the appetite for profit taking, potentially seeing equities markets retrace some of the hard fought summer gains."
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CFD Trading News: Equities Slump as Investors Profit Take Ahead of the Weekend
City Index’s team of CFD trading experts have extensive experience of the financial markets. Here, Giles Watts gives his EU market update for October 15th.