Markets caught in no man’s land

Equity markets seem to have found a range as opinion is divided on whether western economies are poised to ‘double dip’ or are set for growth. Certainly the macro economic indicators have been conflicting, causing share prices to fluctuate within a range. The FTSE 100 index for example has been ranging between 5500 and 5600 for the last 2 weeks. These tight ranges may well continue for the rest of the week, as macro economic data is scarce over the next few days. The technical momentum is still towards the upside but further rallies may present opportunities to take profits before the historically turbulent October sets in..

Equity Markets set for buoyant start to the Autumn trading period.

Friday’s Non Farm Payroll figures showed that companies in the US employed more people than forecast in August, spurring US stocks to climb, with the Dow completing the end of week session at 10447, up 127 points on the day. This rally further increased confidence on this side of the pond pushing European indices higher, with FTSE 100 index closing up 57 points at 5428, having traded at 5109, just 10 days earlier.

Trading volumes have been relatively low this August; however since September arrived, interest and particularly buying activity has been prominent amongst ProSpreads’ high net worth client base.

This weekend’s news of BP’s woes hopefully coming to an end is also likely to kick start more buying next week with significant gains in global equity markets likely in the first half of the month.

The rallying equity markets last week also precipitated in lower treasury prices, a move welcomed by many of the professional traders at ProSpreads, who have been accumulating short positions in treasuries for some time now.