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UK GDP reassures traders

In mid-morning trading the FTSE 100 is up ten points, as the second estimate of UK GDP has matched expectations.

Investors breathed a sigh of relief after news that the third-quarter GDP was in line with estimates. The British economy has been showing signs of strength, and this announcement set traders' minds at ease. The equity markets don’t like surprises, and today’s GDP figure won't rock the boat in terms of quantitative easing.

Political stability seems to be contagious in Europe, as Angela Merkel's Christian Democrats have announced a coalition with the Social Democratic Party. this comes a day after Italy’s prime minister survived a vote of confidence.

Tesco has completed the sale of its US Fresh & Easy business. The underperforming American operation’s disposal has been in the pipeline for a while, and now the cord has finally been cut. Royal Mail delivered a solid set of results, coming just ahead of the Christmas push. As the company only floated just over a month ago, time will tell whether the privatisation will be a true success or not.

In the US, we are expecting the Dow to open 20 points higher at 16,092. We are awaiting additional economic updates from the US today, as tomorrow is Thanksgiving.

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