Reply To: Traders Market Weekly: Santa Claus Came to Town

#69194
Truman
Participant

Major European indices are trading lower in today’s session without a specific news catalyst to account for the weakness other than yesterday’s news that the U.S. market suffered an abrupt selloff in afternoon trading.

The precipitant for that selloff was unclear, although there was some chatter that trading activity in zero-day options hastened the retreat. The U.S. market, though, was ripe for a profit-taking pullback given its huge run since late October, so there was likely a general move to take some money off the table that also played a part in the hasty retreat.

Profit-taking activity looks to have spilled over to European bourses. That hasn’t deterred the euro, however.

It has caught a bid (vis a vis the dollar), helped in part by ECB member de Guindos toeing the party line and saying that it is still premature to be talking rate cuts. EUR/USD +0.4% to 1.0983.

—Equity Markets—

STOXX Europe 600: -0.3%
Germany’s DAX: -0.3%
UK’s FTSE 100: -0.4%
France’s CAC 40: -0.3%
Italy’s FTSE MIB: -0.4%
Spain’s IBEX 35: flat