This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Many of the City’s minds already appear be on holiday as equity volumes drop ahead of the UK’s three-day weekend. August is never a particularly busy month as it coincides with the school holidays, but this year appears to be worse than most.
The UK’s improving second-quarter GDP reading this morning – revised up to 0.7% – confirms the gradual recovery taking place.
Germany also reported solid GDP data that should go some way to providing comfort for both the leaders of the EU and the German public. The ability of Angela Merkel to point towards an economic recovery with German elections just around the corner could help pave the way for another term in power. A solid, reliable leader at the helm of the German economy will be something welcomed by all of Europe.
Ahead of the US open traders will hope that the NASDAQ has managed to get its house in order following yesterday’s unscheduled shutdown, when 3000 equities were suspended for three hours in the middle of the trading day. The technology-based index is likely to receive a fine which could be more severe than the $10 million punishment following the technical disruption which greeted Facebook’s first day of trading.