Wary investors 'pulling out of markets'

Ongoing fears over the future of eurozone economies has meant that investment volumes have been low this week, as many are now simply moving out of markets until the new year.

Mike McCudden, head of retail derivatives at Interactive Investor, argued cracks are beginning to appear in the relationship between the largest players in Europe and this is having the effect of spooking many investors.

He commented: "We're currently looking at a two speed pseudo-federal Eurozone controlled by a rather fragile looking Franco/German pact. The feeling now is that this could all end in tears."

The news follows recent comments by Sanjeev Shah, portfolio manager at Fidelity Special Situations Fund, who claimed a focus on selective valuations must be attempted by investors in the present market, as many stocks are now depressed and represent a good opportunity to invest at historically low levels.

In this way, traders could see significant positive movement when the markets recover.