European morning trade has demonstrated expectedly thin volumes so far, with no newsflow to drive markets and many participants away ahead of Christmas Day tomorrow. Following the short sterling open downside has been observed across the strip after reports in UK press speculating that the Bank of England will defy expectations and raise interest rates next year. Another mover has been the USD which has weakened throughout the morning, trading at session lows and benefiting the majors with EUR/USD and GBP/USD trading at the best levels of the day. Weekend reports in Italian press that the Italian PM Monti is undecided about heading a list of centrist parties in Italian elections has done little to dampen mood in Europe, although the CAC trades down on the day by 0.2% with Vallourec down for a third straight day after S&P forecast no increase in the company’s EU segment profits. The FTSE 100 is outperforming, up just 0.2% with mining stocks leading the way forward after a rebound after selling pressure seen last week.
No economic data or speakers are scheduled today, and as a reminder products in Europe and the US close early ahead of tomorrow’s holiday; US products open as usual today but will all close by 1830GMT.
Print 11:12, 24 Dec 2012 - Market Analysis - Source: RANsquawk
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