The financial spread betting experts at City Index provide a daily commentary on the financial markets. Here, Head of Equities Giles Watts casts his eye over developments on 3rd November.

Greater London, England -- (SBWire) -- 11/08/2010 -- Giles Watts, Head of Equities at spread betting provider City Index (http://www.cityindex.co.uk), commented on 3rd November:

“Equity markets were very much in the mode of ‘calm before the storm’ today with most investors eyeing tonight’s all important Fed decision where we are likely to hear details of a second round of quantitative easing.

European Indices were largely flat and trading within particularly tight ranges as traders began to position themselves for what could turn out to be a volatile evening in US markets and currencies.

From a sector perspective we have seen traders close out some of their positions in the key energy firms and miners after a strong performance yesterday, whilst strength in banking stocks is keeping the FTSE 100 in flat territory.

Retailers hit by Next and RBS note on M&S
Retail stocks have been sold out of today after Next posted sales that missed market expectations whilst a downbeat note from RBS on Marks and Spencers has also weighed on the sector.

Next warned its shareholders that it expects fourth quarter sales growth to be worse than its third quarter and posted a bigger than expected drop in underlying sales of 3.3%, hitting Next shares which fell by 3% in trading.

RBS cautioned that the impending strategic review of M&S due out next week may include plans to re-instate plans for expansion in continental Europe and if this is the case, they may require additional funding.

Sterling hits new 9 month high against the US Dollar
Traders bought into the pound sterling against the US Dollar today, helping to surge the pound to a new 9 month high after data showed that the UK service sector business activity grew unexpectedly last month. UK Services PMI rose to 53.2 from 52.8, when the market had expected a fall to 52.5. The numbers helped to charge sterling higher as it quashes the likelihood of the Bank of England following other central banks and injecting more stimulus into the markets.”

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