Volatile trading and uncertainty are set to persist

AFTER another roller-coaster week, which was the second-worst of the year for the FTSE 100, the only really safe call this morning is for the volatility to rumble on.

Despite repeated international assurances that action will be taken to preserve financial stability and restore economic growth, the markets start another week without anything definite on the horizon.

GFT quotes two-way prices on stock indices around the clock, even when the underlying markets are closed.

The FTSE 100 index is called to open up around 10 points higher at 5,076.

Germany’s DAX 30 index is expected to open up 15 points at 5,211, and the French CAC 40 is forecast to open up four points at 2,814.

QE3 WOULD BOOST THE MARKETS
The markets are not likely to recover substantially until we see something concrete announced, such as QE3 from the Federal Reserve, or a show of commitment from Germany that it will endeavour to hold the Eurozone together.

The longer we go without action, the longer the procrastination continues, the closer we come to the catastrophic consequences being talked about by various commentators.

OSBORNE HAS GIVEN A DEADLINE
Chancellor George Osborne stuck his neck out at the weekend and at least gave a deadline for such action to be taken, with his dramatic claim that we have only six weeks to save the euro. But words and empty reassurances are no longer enough.

By way of economic data in the days ahead we have more evidence to judge whether the US is slipping back into recession.

New home sales, consumer confidence and, stealing the show on Thursday, final second quarter GDP data are all due. A slew of Fed speakers are also lined up throughout the week.

And as the third quarter comes to an end, markets will additionally be gearing up for the beginning of the results season.

GOLDMAN SACHS LOSS FORECAST
As if traders’ nerves weren’t already shredded enough, as if to benchmark the torrid state of many big banks, Barclays has forecast we could see a loss announced by the mighty Goldman Sachs.

Martin Slaney is director of Global Dealing Operations at GFT