European equities see strong start to week

European equities have shot of out the blocks this morning and, although lagging, the FTSE 100 is still a healthy 50 points better off in early trading.

Mark Carney
Source: Bloomberg

Events in Ukraine had every chance of escalating over the weekend, however Ukrainian forces appear to have had the upper hand over the last 48 hours, giving the region a calmer look as the business week starts.

Proactive measures from the White House towards tackling the situation in Iraq continue to offer the markets support, and the solid bounce off Friday's lows gave the US equity markets a far more appealing look by the close of the day.

Bank of England governor Mark Carney has been up to his old tricks again, with a weekend press interview throwing into question the use of earnings-growth as a barometer for interest rate change. Similarities between George Clooney and Mark Carney have often been noted, and the Canadian's latest avoidance tactics when it comes to commitment would no doubt get George's seal of approval.

Bovis Homes has posted impressive first-half figures as the UK house builder has seen its pre-tax profits jump by 166%, but this good mood might be short-lived with Rightmove’s House Price Index out this morning showing a monthly fall of 2.9%. 

The insurance firm Amlin has seen profits collapse, as the cost of numerous global disasters has eaten into its returns.    

The impressive turn around in Wall Street's performance on Friday has carried over the weekend and helped European markets start the week in a buoyant mood. Wall Street is once again coming up to tackle technical resistance but, with the momentum built up over the last week, conversations are likely to turn towards when, not if, it can tackle the 17,000 level again. 

Ahead of the open we expect the Dow Jones to start 79 points higher at 16,741.

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