Rising Commodities and German Court Ruling on Bailouts Boosts UK 100
Mid-morning and the UK 100 is holding triple-digit gains on the day.
Improved prospects for global growth have helped buoy the commodities spread betting markets in general, and lift the London index from the outset today.
However, it’s arguably been the fact we’ve seen no real surprises from Germany, with the country’s constitutional court supporting the Greek bailout measures, that has helped lock in these gains.
Interestingly, however, the subtext here is that it’s going to be much more difficult for Germany to engage in such support going forward, so whether the positive sentiments here can be sustained remains to be seen.
A mixed bag of economic data out of the UK this morning has failed to spoil the party, and there are literally just a handful of blue-chip stocks trading in negative territory.
At present, Dow and S&P 500 futures are pointing to a strong start too, extending the rally we saw start early yesterday with the next US key-data point going to be the Fed’s beige book.
Some may be looking ahead to the detail of Obama’s job creation plan that will be unveiled tomorrow, but right now it seems the focus is on the macro news. So long as sentiment remains supportive, this rally could find legs.
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Financial Market Comments from Ben Critchley, Sales Trader, IG Index.
The above comments do not constitute investment advice and Clean Financial accepts no responsibility for any use that may be made of them.
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September 7, 2011 No Comments