FTSE gains confidence as war fears recede

In mid-morning trading the FTSE 100 is up ten points as the prospect of a war in Syria is postponed.

The US government will debate the Syrian question next week, and in the meantime traders have bought back into the market. The missile tests by Israel and the US on Tuesday showed us how jittery equities are about the possibility of war, but traders are more than happy to go long when they feel conflict is not imminent.

The positive stream of economic data from the UK and the eurozone has prepared the ground for updates from the Bank of England (BoE) and European Central Bank (ECB) at lunchtime. Investors are not expecting any change in policy from either the BoE or ECB, but the statements afterwards will provide us with clues as to what their next moves will be.

Ryanair is in the red for the second day in a row, after the airline everyone loves to hate issued a profit warning yesterday. To add insult to injury, easyJet and Aer Lingus reported solid numbers this morning.

In the US, we are expecting the Dow to open unchanged at 14,930, as dealers sit on their hands until the ADP and jobless claims reports at lunchtime.

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