Traders might have thought that with both the US and Canada off for Labor Day we might have seen a quieter start to September. However this is not the case, as the FTSE 100, and all other major European markets have started the day off in a jolly mood. The FTSE has been able to digest the return to growth of China’s manufacturing PMI figures after three months of decline, and commodity stocks have rebounded on the back of this. Although the underlying spot commodity prices have not exploded, mining stocks look to be factoring in a more stable demand going forward.
The procrastination over the separation of Verizon and Vodafone, the third biggest riser in the FTSE 100 so far today, appears to be coming to a conclusion, and markets are expecting confirmation of Verizon’s £84 billion divorce bill any day. Shareholders of the UK-quoted telecoms company will be hoping to see a large part of that cash redistributed to them. With the US being its main profit region, Vodafone will need to wisely invest in order to maintain the profit they have been used to running.