Over 40 years’ heritage
185,800 clients worldwide
Over 15,000 markets

DAX provides springboard for FTSE gains

Mid-morning trading sees the FTSE 100 up 30 points, as traders return to their desks after an extended break.

A bounce in the DAX yesterday provided the springboard to fresh gains for London this morning, with a bid of M&A spice thrown in for good measure just to keep things bubbling over.

The European parliament could soon be besieged by a wave of new Eurosceptic MEPs, but the victory of governing parties in Germany and Italy has reassured everyone that Berlin will keep a strong hand on the tiller and Rome will not deviate from agreed reforms. Even Ukraine is less of a concern, as the new president signals an attempt at rapprochement with Russia. The broader political situation is thus providing few unpleasant surprises, and with little macro data of note out this morning traders have taken the opportunity to push the market higher.

InterContinental Hotels has reportedly said ‘no’ to a £6 billion bid, and yet again suspicions are rife that a US firm is looking to engage in some fancy tax footwork by domiciling in Britain. If such an attempt were to succeed, it would probably be the first and last of its kind since Congress would try to act quickly to stop any more US firms heading for the departure lounge.

The S&P 500 closed out the week at the magic 1900 level, easing over the finish line in the closing minutes of the session. Sentiment indices from around the world indicate that this has merely brought out a fresh wave of shorting, but we may be seeing the beginnings of a meaningful breakout after weeks of frustrating chop in the markets. US economic data is back with a vengeance and all eyes will be on durable goods, which are forecast to be a touch weaker than last month. 

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.