European Indices head higher on low volumes

European Indices headed higher on Tuesday with only shadows of the normal hustle and bustle of the city of London returned in the midst of consecutive four day weekends. The amount of trading activity seen has been particularly quiet, as one might expect from the short week ahead of us, but there are also a few factors to consider that is also keeping trading activity low such as tomorrows Fed decision and Barclays earnings.

Much of the reduced activity we have seen so far has been focused on the tech sector, with chip maker ARM Holdings continuing to see buyer demand, this time triggered by a positive note and upgrade in price target from Citigroup. The firm’s shares have rallied near 2% on the back of this.

Similarly good gains for energy firms has also kept European Indices afloat, counter balancing weakness in financial and mining shares. There is a degree of anticipation towards Barclays earnings, which are announced tomorrow, that is keeping traders from adding to existing positions within the main banks. A drop in copper prices and gold, with the latter falling from record highs of $1518, has also convinced traders to take profits in the mining sector having seen the sector rally some 6% from last Monday’s lows.

Heritage Oil shares have seen bullish buying activity this morning with investors triggered into action after the oil firm announced a $100m share buyback. Shares have been pushed higher by 7% this morning.

We have the FOMC starting their two day meeting later today and the market is eagerly awaiting any indication of future monetary policy direction and any change in stance from the committee’s current accommodative stance. This factor is also likely to refrain traders from staking large positions ahead of tomorrow’s announcement.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.