Stay On the Sidelines

FTSE 100 5128.48 -68.36 -1.32%
Dow Jones IA 10913.38 -240.60 -2.16%
NASDAQ 2415.4 -65.36 -2.63%
DAX 30 5502.02 -137.56 -2.44%
CAC 40 2981.96 -45.69 -1.51%
AEX 465.94 -7.68 -1.62%
GBP/USD 1.55 69/88 -0.00 -0.01%
GBP/EUR 1.16 69/79 0.00 0.28%
EUR/USD 1.33 46/52 -0.00 -0.31%
USD/CHF 0.91 03/15 0.00 0.30%
USD/JPY 77. 15/79 0.11 0.14%
GBP/JPY 120. 16/26 0.23 0.19%
Gold $/oz 1623.7 0.00 0.00%
Silver $/oz 29.911 0.00 0.00%
Platinum $/oz 1517.95 -7.30 -0.48%
Palladium $/oz 605.88 -12.12 -1.96%
Brent Oil $/barrel 102.09 -2.46 -2.35%
WTI $/barrel 78.51 -4.25 -5.14%

The Dow finishing lower, with mixed news releases and traders likely to be on the sidelines awaiting clarity over what the resolution will be regarding the next tranche of the Greek bailout fund, and possible new procedures put into place to alleviate market fears over Spain, Italy etc.

Operation twist also providing anticipation for whether the coming BOE and ECB rate decisions will be dovish (and the possibility of further QE in the UK will also be debated by markets).

With non farm pay rolls due for release also next week, I am choosing to stay on the sidelines for now. Market sentiment seems pessimistic. News of a large TARP like stability fund for the Euro Zone may trigger an initital 300-400 point rally, however as long as these recession fears and eocnomic indicators dont tick up, the market may remain challenged until earnings season kicks in mid October.