Spreadex Market Update
European benchmarks stabalise
The slide in stock prices seen yesterday has tempered somewhat this morning, with European benchmarks stabilising during overnight trading.
The FTSE opened approximately 25 points higher at 5,794. The Xetra Dax marginally outperforms.
The headwinds currently encountered by those positioning long the market are largely as a result of manifesting headline risks and profit taking, which are likely to concern investors more so after a period of significant outperformance than at other times.
So, investors looking to capture any future inflation of prices are likely to demand a significant premium in exchange for supplying the market with liquidity, particularly with future sentiment expectations subject to highly volatile rates of change.
Paying a premium in a market that can turn on a ten pence piece – and do so violently – can very quickly erode any compelling reason to be long of risk. Participants are requiring more to part with their cash.
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