The most telling comment on the ‘demonstrations’ of yesterday was concerning their ‘start time’. Most city workers are at their desks by eight. Obviously not a time that registers with many of our anarchic brethren. By the time the “stop the city” team had arrived ‘the city’ had already done half a days work.

Markets look to be extending the rally of recent days and the sell off of Friday/Monday is now a distant memory with the FTSE looking to trade above 4000 for the first time since February. For those chartists amongst you a close around these opening quotes would also indicate a breach of one of the major downtrend lines in place since last August (and now going through at around 4000). This level has its own psychological significance anyway and a breach may well be a big trigger to the buyers.

The only small fly in the ointment is that the commodity markets do not seem to be joining in the fun. Oil has dropped five dollars in the last few days, Gold remains stubbornly high and softs are, at best, holding steady. A general sense of optimism in the equity markets is not trickling down into increases in the raw materials of everyday life just yet. Of course stocks and shares are trying to take a view on a year’s time while current production prices must take into account failing business now.

We are seeing heavy selling across all indices in early trade as punters seem unconvinced and (in truth) opposing extended moves in the markets over the last few months has paid substantial dividends for many a trader. The old adage of “Cut your losses and run your profits” would have cost a pretty penny in the recent past and many traders are now doing the exact opposite. At the moment it is paying off but on any real extended move clients would be in trouble.

Currency markets are following the contained market trend with the pound appearing to go through schizophrenia activity on a weekly basis. One moment it is the end of the world and the next “Oh! maybe things are not that bad”. At 1.4550-1.4553 in Cable there is a certain sense that possibly a longer term move higher might be in the process of building. The precipitous falls of last year have not been repeated, so far, in this one and it is difficult to get too excited by the increasingly weak attempts to force Sterling lower. The pound is also striving manfully to regain some lost Euro ground as well this morning.

In conversation with some brokers they appear to be getting a lot of major investors worrying that they are missing the beginning of the turn and there seems to be a turn towards cyclical stocks going on. Of course we are now in the situation of wondering if the big players are starting to act like rookie investors. Several years of poor performance followed by any fear of ‘missing the boat’ in an upturn might make for panicky decision taking. The argument that the professionals will leave the first (and last) 10pc of any move to others always sounds good in the pamphlets but we are now 18pc above the lows of early March and allocation boards will be getting twitchy with any funds who appear to have missed out on the move higher.

The sentiment looks good but then it did at the start of the year as well. Traders are advised to keep their running shoes close as any disappointment over the G20 communiqué may spill into a sharp move lower.

The Dow does not seem to be getting as over enthusiastic as the FTSE as it continues to struggle to make it above the 7850 to 7920 resistance level. This area acted as strong support through January and early February and the market bounced off it 10 times in 20 twenty or so trading days. When it was finally breached was the start of the big 1500 point move to the lows. If we can manage to break above 7920 (and even better 8000) confidence would take a real shot in the arm (we are currently quoting Wall Street at 7900-7904).
As mentioned Oil has taken something of a battering in recent days with Brent drifting from a high of 53.83 last week to a low of 47.23 yesterday. We have two competing influences, on the one hand we have high stocks and reducing demand and on the other we have the avowed intention of the producing nations to try to force prices back up to the 75 buck level.

For all the joyous sounds from the G20 the fact is that the politicians are building a huge array of impediments to business under the guise of regulation. This meeting of the great and the good may well doom the earth to many years of bumbling along the bottom. This would mean lower oil prices for a lot longer than expected. Fortunately I believe that, aside from a few noises in the direction of tax havens and hedge funds, (areas that all politician despise) nothing will come from this meeting other than a huge photo opportunity to bolster flagging domestic popularity.

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