Many of the City’s minds already appear be on holiday as equity volumes drop ahead of the UK’s three-day weekend. August is never a particularly busy month as it coincides with the school holidays, but this year appears to be worse than most.
The UK’s improving second-quarter GDP reading this morning – revised up to 0.7% – confirms the gradual recovery taking place.
Germany also reported solid GDP data that should go some way to providing comfort for both the leaders of the EU and the German public. The ability of Angela Merkel to point towards an economic recovery with German elections just around the corner could help pave the way for another term in power. A solid, reliable leader at the helm of the German economy will be something welcomed by all of Europe.
Ahead of the US open traders will hope that the NASDAQ has managed to get its house in order following yesterday’s unscheduled shutdown, when 3000 equities were suspended for three hours in the middle of the trading day. The technology-based index is likely to receive a fine which could be more severe than the $10 million punishment following the technical disruption which greeted Facebook’s first day of trading.