Financial spread betting expert Nick Serff of City Index gives his EU Market Update for 27th October

Greater London, England -- (SBWire) -- 11/02/2010 -- Nick Serff, Market Analyst, City Index (http://www.cityindex.co.uk) commented:

“Trading in London was dominated this afternoon by the ongoing speculation over the size of the expected forthcoming QE2.

Most asset classes traded lower after an overnight newspaper article suggested that the forthcoming easing might not be as aggressive as investors had thought. The Dollar continued to be the main beneficiary, especially against some the perceived risk currencies such as the Euro and the Australian Dollar.

U.S. Durable Goods Orders also added some fuel to the QE2 fire after coming in stronger than expected at 13:30 London time. Big ticket orders for commercial aircraft pushed up the price for manufactured goods in September to 3.3 percent. However, excluding transportation, orders fell 0.8 percent for the month after a drop in spending on machinery and computers; analysts had been forecasting for a rise of 2 percent.

Mining and metal shares were the worst performers on the FTSE 100 today on the back of the stronger Dollar. Kazakhmys and Vedanta came under the most pressure, both falling over 4 percent. Investor volume in Desire Pertroleum remained heavy all day on sketchy speculation that there could be a two pound bid on the table. At one point the shares rallied up over 100 percent on the day before coming back, but still managed to post strong gains at the close."

For more on trading financial spread betting, visit http://www.cityindex.co.uk/spread-betting/.

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