Europe has been playing catch up to both the US and the UK for some time, and this morning’s news that the eurozone has officially emerged from recession will come as welcome relief to many. European Central Bank supremo Mario Draghi can finally say ‘I told you so’, even if he was somewhat premature with his predictions.
The news that the UK has managed to hold on to its 7.8% unemployment level is one further piece of good news for Mark Carney and the team at the Bank of England. This, coupled with the slowing inflation rate does continue to point to an ever improving picture as far as the UK economy is concerned. Having said that, it’s unlikely to speed up the date at which interest rates could be increased.
The FTSE 100 was down ten points at 1.30pm (London time), but with a number of companies going ex-dividend today, and taking 21 points off the market, in real terms London’s leading index is performing a little better.