Weak Chinese Data and Quadruple Witching Weigh on FTSE Market
In mid-morning trading, the FTSE is down slightly, as options expiry day produces a burst of volatility.
Optimism reigned in the early part of the morning session, as spread trading investors shrugged off weaker Chinese and European data and remembered that central banks are preparing to open the taps on new easing measures.
Also helping was a report that suggested Spain was moving towards new negotiations with its Eurozone partners on reform plans, although foot dragging from Madrid is still a likely scenario.
Plus, the release of Appleâ€™s latest shiny gadget, the iPhone 5, is set to provide an additional boost for technology shares.
‘Quadruple witching day’, when a plethora of options expire, meant that the FTSE dropped sharply, but this is a small hiccup when compared to the recent strength we have seen in equity markets.
With an almost empty economic calendar this afternoon, the second half of the session may well finish on a quiet note.
Ahead of the US open, we expect the S&P 500 to open around 2.5 points higher, at 1462.
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Financial Market Comments from David Jones, Chief Market Strategist, IG Index.
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