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US GDP raises hopes

Equities have held onto their gains after positive gross domestic product (GDP) figures from the US.

All trading involves risk. Losses can exceed deposits.

Stock markets got off to a good start this morning, as bargain-hunting set in following two days of lost ground. Potential military intervention in Syria appears to have been put on hold, and this allowed traders to pick up cheap stock.

UK-listed banks are in the black, as investors are feeling less fearful about the eurozone debt crisis. A successful Italian government bond auction and encouraging retail figures from Brussels brought a sense of stability to the region.  However, mineral extractors are in the red due to a drop of over 1% in the price of copper, since mining companies often track the price of the underlying metals.

In the US, the Dow is up 30 points at 14,855. Traders welcomed the news that the US economy grew by 2.5% in the second quarter, compared with a growth rate of 1.7% in the first three months of the year. This could be sign that the stimulus package implemented by the Federal Reserve is working, which could mean tapering will happen in the next few months.

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