The Footsie 100, is there trickery?

yesitwasme

Last night it closed down at about 6700, due mainly to the Russians misbehaving I believe. This morning at opening it miraculously zoomed right back to where it had been at yesterday afternoon at 6800. So I would like to know are there stabilizers in place? does someone hold the key to the reset button? If you look at the stats the graph did not behave in an orderly fashion, it just looked like some divine intervention had taken place and someone had said "oh no no no, we can't have that, we will put the market back where it should be" and stop the likes of (me) piling in and filling my boots. Pricing point of the fund I was watching is at noon, all prices had recovered, a conspiracy theory for sure?:mad:

ChopperST

Or people seeing a buying opportunity?

talexuser

Scenario 1 : People panic sell on news of the international situation, prices come down on a sell off. Investors reckon there's not that much to panic about after all and when prices are cheap enough seek to buy low - in large quantities, index shoots up again.

Scenario 2 : Ernst Stavro Blofeld sits in his underground mountain lair stroking his cat with his minions having hacked into all the worlds' major indexes and can manipulate them at will.

Take your choice.

giffnockhibee

Time does not stand still, between close of play one day, and the market opening the next morning. Overnight events will have been influencing the dealers, and it is their valuations which construct the opening index.


Giffnockhibee

Drp8713

The sheep that sold yesterday are climbing over each other to try and buy back today before the price goes back up to what it was on friday.

One of my shares was down 5% yesterday and its up 7% today.

redbuzzard

You sometimes hear of indications from pre-market activity/trading ahead of the open. There was a comment of that kind on the wireless yesterday, heralding the market opening down on Friday's prices.

Freecall

As giffnockhibee says the London market does not exist in isolation.

In fact if you look at overnight changes you will frequently see that is where the main activity is compared to intraday movements. It was just that with the 1.5% or so changes of the past day it was more obvious.

This has become increasingly the case in modern times and applies to all indices although a primary index such as the FTSE100 is probably more affected due to the international exposure of it's constituents.