European markets open weaker

In mid-morning trading the FTSE 100 is down over 30 points, as an Asian sell-off has dampened equity markets' enthusiasm.

A combination of the Asian markets selling off and yesterday's failed attempts to tackle August highs have resulted in the FTSE 100, along with most of Europe, opening weaker. Having seen the best part of 400 points added to the UK benchmark index in the last two weeks, in an almost straight-line move higher, it is perhaps no surprise that traders appear to be pausing for thought. Yesterday’s 'bad news is good news' interpretation of the US non-farm payroll figures only carried the markets so far before they ran out of steam.

A few of years ago, many were asking questions about where Argos was going, but increasingly its figures are answering the doubters. The September announcement of a tie-up with eBay as a 'click and collect' destination confirms the feeling that the firm has seen retail consumer demographics turn in its favour. With first-half figures showing that mobile sales have increased by 124%, this is one retailer looking forward to the festive season with more than a little cheer. Sports Direct appears to be another retailer which has its house in order, with confirmation that it is well placed to reach its full-year targets.

The future indications for this afternoon’s US market opening are pointing towards a slightly less pessimistic assessment by US traders than their European counterparts. It's another heavy day of corporate reports ahead, including quarterlies from Boeing, Caterpillar, US Airways Group, [shares:T-US|AT&T, E*TRADE and Northrop Grumman. These updates should offer analysts more than enough data to chew through. Ahead of the open, we expect the Dow Jones to start 75 points lower at 15,392.

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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa 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. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.

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