(eToro Blog) In London trading today, the FTSE has been experiencing heavy, broad-based selling. One analyst pointed out that with headwinds coming from all different directions, market participants are essentially realizing that now is not a bad time to sit on the sidelines and just watch the game.

As he sees it, the attraction to stay in the market just isn't there, and smart market players are realizing that better buying opportunities await them in the future. To paraphrase one market strategist, buyers are on strike.And where are those headwinds coming from? Yet again, Chinese growth and Eurozone worries continue to wreak havoc in the markets, this time, having an impact on equities as investors call for a time-out.

On the FTSE, losses in the mining, financial and travel sectors are keeping the Index from reclaiming the 5,900 point mark, and all but erased gains made on Friday. The FTSE had at one point in the session lost 1.5% of its value.

The mining sector, especially, saw significant sell activity with half of the top 10 losers coming from that sector; losses are being attributed primarily to the recent report that manufacturing growth in China slowed in May to a level not seen in 10 months. Mining giant Anglo American lost 3.9%, the most in the sector.

Financial sector stocks are also taking a hit as a result of the ongoing fiscal problems in the Eurozone, with the focus returning again to Greek debt, though Spain's recent election surprise is weighing, too. While essentially "old news," last week's ratings downgrades of both Greece and Italy are also still casting a pall. London-based Barclays Bank took the largest loss among financial sector stocks, losing 1.9%.

A volcanic eruption is the cause of the sell-off in the travel sector, with investors worry that this Icelandic volcano could cause similar disruptions to air travel, much as it did a year ago. Hardest hit in the sector was EasyJet, which lost 6.1%, the largest single loss among the FTSE's top 250.

The FTSE was recently trading lower at 5846.36 points, and buyers on the eToro trading floor outnumbered sellers by a ratio of 9 to 1.

Copyright 2011 eToro Blog

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