"With the corporate reporting season getting underway, Asian shares have failed to inspire as investors stayed cautious after global shares faltered overnight on weak earnings report and outlook. While excessive risk aversion has softened there is little to be positive about the global growth slowdown, any dip in the markets will however be a buying opportunity," said trade Max Cohen from Spreadex.
Meanwhile, concerns about Spain have increased over the last few days after a decent outcome at the regional elections for Prime Minister Mariano Rajoy is thought to have reduced the pressure on him to request a bailout.
Ratings agency Moody's downgraded five Spanish regions to 'junk' today due to the "deterioration in their liquidity positions, as evidenced by their very limited cash reserves as of September 2012 and their significant reliance on short-term credit lines to fund operating needs."
"Range trading will most likely continue with further losses possible as stocks are struggling to find any positive news that would give them a new push to the upside, however downside potential should be limited as similar as seen yesterday in the US bargain hunting is likely to set in as traders take advantage of cheaper prices," Huber said.
http://www.lse.co.uk/sharecast-news-article.asp?ArticleCode=20445868&ArticleHeadline=london_open:_whitbread_and_the_miners_provide_a_drag_early_on
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