London, England -- (SBWIRE) -- 12/23/2010 -- CFD trading expert Joshua Raymond, Market Strategist at City Index (http://www.cityindex.co.uk), looks at EU market activity surrounding the FTSE and other European indices on 20th December:
“Thin trade is helping to exacerbate moves higher in European Indices today, pushing the DAX and CAC higher by 0.3%-0.6%, whilst the FTSE 100 also traded marginally into positive territory.
To be perfectly honest, one would expect there are more traders stuck at Heathrow right now that at their trading terminals. In that essence, traders stuck at Heathrow and the FTSE 100 Index have one thing in common, neither are likely to be going anyway soon for now.
The markets are likely to have seen most of the years trading volume already and with little expected over the coming week, the FTSE 100 could be stuck in a rather mundane trading range until the New Year.
For those that remain actively in the markets, the session has been dominated by a lack of news and concern over rising tensions in the Korean peninsula after South Korea completed a military exercise. These concerns and of any potential to drag China into the conflict could see traders hit defensive mode. For now however, they are in wait and see mode.
We have seen sellers of airline firms today with British Airways bearing the brunt of the selling. Investors are concerned that the dire weather disruption is adding to existing problems and with the prospect of fresh union strike action in the New Year, sellers of the stock are clearly fearing that pressures on the firm could continue into 2011. British Airways shares have fallen 2% this morning as a result.
Gartmore Group remains the standout faller in London today, with its shares falling almost 10% after the UK investment manager confirmed after Friday’s close that it was in takeover talks with US peer Henderson Group. After its shares had rallied as much as 12% on Fridays session on rumours of the takeover, those opportunist investors who jumped in early have already decided to cash in, making this a particular case of ‘buy the rumour and sell the fact’.”
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