City Index’s team of spread betting and CFD trading market experts have extensive experience of the financial markets. Here, Joshua Raymond gives his EU market update for October 5th to help give you a trading edge.

Greater London, England -- (SBWire) -- 10/06/2010 -- Joshua Raymond, Market Strategist of CFD trading and spread betting provider City Index (http://www.cityindex.co.uk) commented:

“Better than expected service sector data out of the UK and Euro zone helped Indices across Europe to halt a 6 day losing streak to post gains of as much as 1%. Moreover, news that the Bank of Japan may expand the size of funds its uses to buy assets and stimulate its economy is also boosting stock demand today.

The move by Japan to cut interest rates to zero and purchases assets worth $60bn have taken traders a little by surprise. What the move does is boost confidence that central banks are acting to maintain the recovery and this also raises optimism that the Fed and Bank of England may follow suite next month in announcing their own second round of quantitative easing.

UK and Eurozone services sector grew at a better than expected rate giving stocks am early boost in Europe having opened weaker. However, service sector growth remains alarmingly weak, with UK services only mildly recovering from a 16 month low, whilst Euro zone service sector growth remains subdued. As a result, the knee jerk boost the data gave to stocks was relatively short lived.

Trading ranges remain fairly tight with investors refusing to add to positions too aggressively with an important week of economic data ahead culminating in Friday’s non-farm payrolls.

Travel and Leisure firms rally
We have seen strong demand for travel and leisure firms today with TUI Travel and British Airways both posting strong gains in London trading. TUI Travel shares have rallied as much as 4.5% after the firm said that booking numbers are growing and that they expect to reduce its debt position over the coming months. This is giving shareholders increased confidence in the company.

British Airways shares continue to rally too on the back of Ryanair’s announcement yesterday that passenger numbers increased by 12% last month, and after Davy stockbrokers issued a positive note on the stock.”

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