Greater London, England -- (SBWire) -- 12/03/2010 -- Spread betting expert Giles Watts of City Index (http://www.cityindex.co.uk) delivers his market update for 26th November:
“The FTSE 100 endured a rollercoaster day that saw the UK Index fall as much as 1.7% before a late recovery reduced losses to 0.5%.
With the US markets only trading for half the day having been closed yesterday for Thanks Giving and with it being a Friday, true sentiment is being clouded by low volumes which are exacerbating moves lower and higher. This could go some way to explaining why the FTSE fell by 1.7% by lunchtime, only to recover another 1% by closing.
A turning point ahead?
The forthcoming week could well point to a turning point in the financial markets after a strong bull run that saw Indices across the US and EU reach new two year highs. Since the 4th November, the FTSE 100 Index and FTSE Volatility Index(VIX) have moved in ways that may raise alarms for those looking to protect their market gains into the holiday season next month.
Since the 4th November, the FTSE 100 has fallen by almost 5%, whilst in the same period the FTSE VIX, the markets key gauge of fear, has rallied 7.7%. The UK Index is now entering the sort of correction levels whereby if we are to maintain the bullish momentum into the end of the year with the traditional Christmas rally, we could see buyers re-emerge to pick up stocks at these lower levels. That said, escalating sovereign debt fears, typified by the rise in the VIX, could convince traders to sit on the sidelines and protect their recently attained profits.”
Find out more about financial spread betting market activity at http://www.cityindex.co.uk/spread-betting/ .
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Financial Spread Betting: Rollercoaster Day Leaves FTSE With Losses of 0.5%
The financial spread betting experts at financial spread betting provider City Index give traders daily updates on financial market activity. Here, Head of Equities Giles Watts casts his eye over EU activity on 26th November.