Europe Opens Flat Despite US Indices Declining: Financial Index Spread Betting News

Calendar February 9, 2010 | Posted by Robert

A rise this morning in the US futures has offset the falls last night and so the European equity markets have opened broadly flat.

Last night the US indices continued their recent declines, with the Dow Jones finishing below 10,000 for the first time since November, as concerns over the fiscal stability of Greece, Spain and Portugal continued.

Banks and commodity producers were the laggards.

On the currency markets, the Yen and Dollar were the main losers as the Euro rallied from a near year low. The Euro strengthened against the Yen in particular as speculation increased that the ECB will agree to assist Greece in tackling its debt.

In general, investors are, for the short term at least, recoiling from investments in instruments of risk. The belief that deteriorating European finances could derail the world recovery is becoming more pervasive.

A quiet day for economic figures, with only the UK Trade figures, at 9.30 am, and US Wholesale inventories, at 3.00pm, attracting any interest.

On the equity front, a quiet day news-wise is headlined by BSkyB selling its 10.4% stake in ITV for £196m, finally bringing to an end its long running battle with the broadcaster.

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The above comments do not constitute investment advice and neither Spreadex nor SpreadBets.org.uk accept any responsibility for any use that may be made of them.

By Richard Griffiths, Senior Equity Trader, Spreadex.

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