When the US and EU cash markets have closed, the index future movements get very tight. Are these movements purely speculation when hedging and dispersion trading are less likely to occur?
pretty much an extended overnight session. Market sentiment and any news or lack of news will influence price action. Looks like today it is pretty much a continuation of Friday's late session breakout push.
There can be some big moves at times, especially when news hit and/ or when the diff. markets across the world open. Watch price action when far east starts trading, then Europe.
Other than news, what do the indices follow during eu or asia market sessions when the indicies' underlying are closed.
underlying sentiment , if any, in the global markets. So for example if China opens much lower, US may follow initially overnight.
No day is the same as the previous day if we talk about any of the markets. This is what helps us in planning our strategies accordingly so that we can make profits from these market movements.