Investor Sentiment Remains Volatile and FTSE Falls

Posted on | June 7, 2010 |

Investor sentiment continued to remain volatile going into the European close with equity markets seesawing between losses of 0.5 and 1 percent before closing on the latter for the day.

The Oil & Gas sector was the main drag on the FTSE 100 with BP reversing earlier gains to lose nearly 1 percent on the day. News from the US coast guard that the spill containment unit could possibly be disconnected in the event of a hurricane pushed the share price back to within touching distance of its recent low.

The miners were also weaker on the day, with the sector losing 2.2% and contributing much to the FTSE 100 weakness.

Wall Street came under pressure with the DOW managing to trade just shy of the psychologically important 10,000 level before slipping back to support at 9900. Investors continue to remain jittery after Fridays US jobs data fell well short of market expectations

The much better than expected German Industrial Orders data did help Indices to reverse much of the earlier losses, with the FTSE 100 trading flat at one point albeit briefly. However, in what has become a familiar trend over the last month or so, investors are all to happy to use rallies as opportunities to close positions out at high levels, and this forced the FTSE back down over 1% on the day.

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Spread Betting and CFD comments by Nick Serff, Market Analyst, City Index.

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