Greater London, England -- (SBWire) -- 12/13/2010 -- Spread betting expert Joshua Raymond, Market Strategist at City Index (http://www.cityindex.co.uk), looks at spread betting market activity relating to mining stocks and the proposed move by President Obama to extend tax cuts, on 8th December:

“European Indices traded largely flat on Wednesday with attempts to move higher on the back of gains in insurers such as Prudential hampered by weakness in heavyweight mining stocks.

With the US dollar gaining around 0.5% this morning, boosted by the biggest one day rise in US 10-year Treasury yields yesterday on the back of the proposed move by President Obama to extend tax cuts, this is curbing demand for key metals such as Copper which has retraced from record highs and pressurizing key mining stocks such as Kazakhmys and Eurasian Resources in the process.

Prudential shares have been one of the standout gainers after UBS upped its price target on its shares 800p from 700p.

There is a notable vacuum of significant economic data out today and so the general trading theme has been one of dollar strength pressurizing commodity stocks and traders clinging onto any M&A news. Euro zone debt issues remain in the headlights, but we have seen a general willingness from investors to focus on the positive stories out there than concentrating on risk aversion. This is one of the fundamentals driving European Indices higher of late.

One of those M&A stories lighting up stocks today is that of surrounding Smith and Nephew, whose shares have rallied straight to the top of the FTSE 100 leader board on the back of a story in the Daily Mail speculating a potential £7.1bn bid from a US consortium.

Capital Shopping Centres shares fall 4%
On the downside, Capital Shopping Centres is the main faller in London with it shares falling just under 4% after key stakeholder Simon Property said it may sell its shares in the firm. The issue surrounds Simon Properties attempt to buy CSC hitting a brick wall after the firm rejected a request by the US property group to withdraw from a £1.6bn planned acquisition of the Trafford Centre in Manchester. Simon Property have clearly taken this rejection as a bitter blow to their interests in CSC and today’s statement, whilst clearly attempting to entice other CSC shareholders to join them in rejecting the £1.6bn proposal, can also be viewed as a threat too, should the purchase proceed as planned.”

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