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 6th to help give you a trading edge.
Greater London, England -- (SBWIRE) -- 10/13/2010 -- Joshua Raymond, Market Strategist of spread betting provider City Index (http://www.cityindex.co.uk) commented:
“Strong demand for commodity stocks helped to surge Indices across Europe higher by 1% on Wednesday, following on from yesterdays bullish session as investors clung on to hopes that central banks across the world are preparing to act to maintain the global recovery.
The move by Japan yesterday to cut interest rates and announce a $60bn fund to purchase assets has lifted optimism that they could be the first of several central banks to act.
We have the Nikkei hitting a new 2 month closing high this morning, whilst the Dow Jones is nearing the 11,000 level and the FTSE broken through 5650. The strength of the rallies we are seeing has takien a few investors by surprise and we cannot discount that some of the elements pushing stocks higher is short covering.
Aside from heightened optimism for extra stimulus from the Fed and the Bank of England sooner rather than later, there is not much else out there on the positive news front, which convinces that traders are clinging to stimulus hopes. Typically with non farms payrolls and rate decisions from the BOE and ECB to come, we would not normally see such proactive buying unless traders expected a massive jobs number, and there have been no clues that this is expected as of yet.
Most of the charge higher in European Indices has been triggering by healthy gains in key miners, helped immensely by Gold hitting new records of near $1350 and Copper prices posting new 2 year highs. Gains in Anglo American, BHP Billiton, Xstrata and Rio Tinto are all contributing as much as 20 points to the FTSE’s rally so far this morning. We have also seen Crude Prices hit a new 4 month high today too, which has helped to underpin gains in energy firms.”
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