FTSE/DAX rallies 0.8% – IBEX woes continue on debt concerns

<p>The FTSE and DAX rallied 0.8% on Thursday, bulled by a strong mining and bank performance. However, the Spanish IBEX lagged the rest of Europe […]</p>

The FTSE and DAX rallied 0.8% on Thursday, bulled by a strong mining and bank performance. However, the Spanish IBEX lagged the rest of Europe as uncertainty continued over whether the debt laden country will be able to meet its debt obligations.

There was a strong surge in Indices towards the close but the move was more about low volumes than any significant beneficial news story or upsurge in risk appetite.

Property firm Capital Shopping Centres led the charge higher in the UK, after the property investor said that they had received a potential offer from US shareholder Simon Property. It shares were in high demand for much of the day, closing 13% higher. This in turn boosted the sector as a whole and Hammerson shares followed closely on CSC’s heels, rallying 5% in the process.
The day’s session has in truth been rather quiet with low volumes as the US celebrates Thanks Giving day. The FTSE closed higher by 0.8% and whilst this may give off the scent that traders were hunting stocks today, this could not be further from the truth with some heavy buy orders exacerbating moves higher due to the low volumes.

The IBEX continued to be hit hard as investor fears continued that having seen Ireland require a bail out, Spain may be next in line to fail to meet its debt obligations. The IBEX has fallen as much as 8% since the end of last week whilst bond spreads have widened considerably.

 

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (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.