European markets choppy as traders await Triple Witching Day

Joshua Raymond, Market Strategist at City Index commented: "European markets traded choppy with very tight trading ranges as investors sat firmly on the sidelines and awaited Triple Witching Day, where stock index futures, index options and stock options all expire together.

Triple Witching Day is always viewed by investors with a degree of apprehension as it can cause some fairly ferocious spikes in prices and indeed we have already seen elements of this already.

After yesterday's losses there are not many investors taking any chances today.

We are now entering the real quiet period of the year with many investors taking an early Christmas break this weekend and not returning until the new year and so we may be simply trading through the motions and range bound until the heavier volumes start to come back.

Miners higher on weaker Dollar

The miners are making some in roads today thanks largely to the weaker US Dollar helping to push Copper and Gold prices higher. As a result, Randgold Resources and Antofagasta amongst the main equity risers in London.

Banks the main drag

Barclays and Lloyds are the heaviest fallers on the Index, tracking a weaker banking sector with investors continuing to get out of banking positions after yesterdays falls.

VIX taking interest

The 9% spike higher on the Volatility Index, the traditional gauge of fear in the market, is also taking a bit of interest today having seen the VIX fall 35% since the beginning of November. Whether or not yesterday's spike higher gathers momentum remains to be seen but it will be watched with interest by investors as we head into the new year as an indicator of whether a bout of consolidation could be on the cards.