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.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.