London, Greater London -- (SBWIRE) -- 10/27/2010 -- Joshua Raymond, Market Strategist at spread betting provider City Index (http://www.cityindex.co.uk) commented:

“European Indices fell back on Monday, continuing from Friday’s weakness as the US Dollar staged a recovery, causing commodity prices to fall and as a result, key mining stocks have tracked this fall, weighing on European Indices.

From the 25th August to last week’s highs, the mining sector has rallied 31% and so it is no real surprise that having seen the US Dollar strengthen and commodity prices weaken, traders are starting to bank profits in this sector today. Vedanta Resources, Lonmin and Xstrata are all key fallers on the UK Index, with BHP Billiton and Rio Tinto’s cancelled joint venture also weighing on mining sentiment. The mining sector has fallen 2% in early trading.

We have seen a recovery from the USD against many of its counterparts since Friday. This week could be critical in determining whether a Dollar reversal will materialise or whether it is simply a delay in the incessant downward trend in the dollar. Should the Dollar reversal gain in strength, this could pose a threat to recent Index strength, much of which has been dictated by strength in commodity prices and the heavyweight mining and energy sectors.

Man Group continues to outperform
Man Group shares continued their recent bullish performance by hitting a new 6 month high of 275p. Man’s shares have rallied over 25% in October alone and the buying strength we have seen insinuates that traders are still seeing further upside for the stock. That said, traders may be enticed into cashing in some gains should a double top form at around the 280p level.

Bluebay Asset Management surges 30% on RBC takeover
BlueBay Asset Management shares rocketed 30% in trading after the firm agreed to be taken over by Royal Bank of Canada for 485p per share, approximately £963m. The deal has helped BlueBay’s shares hit a new 3 year high today with many analysts viewing the offer price as high enough to warn off any rivals considering a counter bid.”

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