European indices start week on front foot

The week has begun in fine form, with the FTSE 100 rising by over 60 points as the UK goes back to work with a spring in its step.

A weekend of sun and sporting success has put everyone in a good mood, with the markets reflecting this. After Friday’s disappointing finish in London, US markets were able to recover their form, and this has put the FTSE 100 on the front foot. Major indices have managed to shrug off the Fed-induced volatility, but with the minutes of the latest meeting due out on Wednesday we could be in for a rude shock.

The week has got off to a quiet start in both economic and corporate terms, but a general easing of fears about Greece and Portugal has helped to calm nerves. Given the history of the eurozone crisis however, the problems in these two countries could easily be back to haunt investors before the summer is out. BP is feeling the heat from compensation claims for the Deepwater Horizon spill, and while it might have a point about some of the claims the company’s view is unlikely to win it many friends in Washington.

Earnings season kicks off with Alcoa this afternoon, with the usual excessive amount of importance attached to this company. One update does not determine the tone of the entire earnings season, but at least it will provide a view on how the aluminium market is faring, an important element given ongoing worries about the Chinese economy. The rally from June lows means that highs for the S&P 500 above 1650 are now the next target, but Wednesday’s minutes could easily pull the rug out from underneath the current move higher.

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.

Find articles by analysts

Een artikel zoeken

Form has failed to submit. Please contact IG directly.

  • Ik wens per e-mail informatie van IG Group bedrijven te ontvangen over handelsideeën en IG's producten en diensten.

Voor meer informatie over hoe wij uw gegevens mogelijk kunnen gebruiken, bekijkt u ons Privacy- en toegangsbeleid en onze privacy website.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.