European stocks took a beating yesterday but bounced well in early trade on Friday. Dead cat bounce? Not so sure – we’re still just trotting over well-worn turf and there is not any real momentum on either the upside or downside. The FTSE 100 tested close to the September lows but these held and the index finished at clear of the 5,800 level at 5,832. This area around 5,780 has been tested 6 times in the last month and is holding. This morning gains took it towards 5900. US markets fell slightly, but the S&P 500 was down just 0.15 per cent to 3,483 after 3,440 held at the low. Asian markets edged higher. US futures were flat. Gold is steady above $1,900 but approaching channel resistance around $1,917/20. WTI (Nov) is holding $40 after EIA showed a 3.8m-barrel draw on US stockpiles but bulls failed to sustain a move north of $41.
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