Mike McCudden, Head of Derivatives at Interactive Investor (www.iii.co.uk), gives his thoughts on the last week of trading and looks ahead to what we can expect next week.
"It's been another volatile week on the markets as thoughts have been straddled between the situation in Greece and the US economy. The Greek government survived the confidence vote allowing the markets a brief bounce but a clear resolution has yet to materialise. In the US Bernanke gave a fairly downbeat statement lowering growth forecasts and predicting inflation would come in higher than expected this year.
"With the daily volatility and downbeat sentiment coming from all angles investors are running scared.
"In the spread betting and CFD world most clients traditionally prefer to be long of the market so the general sentiment is to wait and see. In the FTSE, clients are seeking even lower levels to set up their trades, with some anticipating a stern test of the significant 5500 level. With significantly low Price to Earnings ratios across equities, bargain hunters will be searching the market for opportunities.
"Next week's focus will again be with the Eurozone and no doubt further twists and turns to the Greece tragedy. Investors will also await Wednesday's German CPI and Eurozone consumer confidence, and Thursday's UK figures, with interest.
"Traditionally it is a quiet time of the year but I suspect traders will be taking their eyes off Wimbledon and back to the markets more often than usual."
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