Nervous day for European markets

Even though the US markets remained positive through the afternoon session, it has not been enough to embolden the equity markets on this side of the Atlantic.

The FTSE has gone into the close flirting with the 6300 level and has been hovering around this level for the last couple of hours. The day started off on a slightly more optimistic note, following the overnight news that Australia had kept their interest rate on hold. This gave a number of mining stocks a boost; however those gains have slowly been eroded over the day. The banking sector has also ended badly in the red with the Royal Bank of Scotland leading the charge down, and is now off almost 3% on the day.

Vodafone has been rumored to be looking at another acquisition, of Italian company Fastweb, with the aim of improving their cable coverage across Europe. The communications company are also already in the process of coming to an agreement to take over the German company Deutsche Kabel.

It is likely that this week’s equity volumes will be lower than the average has been over the last couple of weeks, as traders will be conscious that the US are on holiday on Thursday 4th July for Independence Day. This will then be followed by Friday’s non-farm employment figures.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.