Financial spread betting expert Giles Watts gives his EU market update for 8th November

Greater London, England -- (SBWire) -- 11/10/2010 -- Giles Watts of financial spread betting provider City Index (http://www.cityindex.co.uk) commented: “European indexes paused for breath in early trading after posting two year highs on Friday. FTSE drifted lower by 15 points as mining stocks eased back from Friday’s levels, underlying metal prices edged lower and the dollar posted muted gains, dragging the mining sector away from last week’s highs.

Oil stocks also drifted lower as BP and Tullow Oil dragged 5 points off the index tracking a lower crude price. Standout lagger was Rolls Royce whose share price came under further pressure with news that Qantas has grounded its A380 fleet for a further three days, investigation has switched to oil leaks found in new engines supplied by Rolls Royce; any further issues could see further downside for Rolls Royce.

Retail giant Marks and Spencer traded better, up 1.3% ahead of tomorrow’s update; improved margins and increases sales growth are expected to have boosted the first half profits, but the new CEO’s strategic plans are likely to attract much attention. The share price has already rallied 30% since the beginning of August, so the new CEO will have to deliver to prevent profit taking.

In a quiet week for macro data, investors will be looking to see whether the market can hold onto the gains of last week. The clarification of QE2 and encouraging jobs data has heartened investors, but there is always concern that the market may have overreacted to the upside and we could be due some slight correction."

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