Fiscal Cliff Optimism Drives FTSE 100 Market Towards 6000
The FTSE has moved ahead this morning, up 30 points, as fiscal cliff optimism takes firm hold of investors.
Markets have shaken off their skittishness from earlier in the week, and are marching towards fresh highs.
The Asian session saw the Nikkei 225 break through 10,000 for the first time in over eight months, while in London the FTSE now sits closer to 6000 than 5900.
The Japanese elections over the weekend installed a government more committed to aggressive easing, and markets seem to have finally woken up to this.
In corporate news, Bunzl is feeling distinctly lonely, down 4% after a trading statement.
In contrast, UBS has shaken off early weakness to rise 1.5% despite the news of a substantial fine.
London’s banks, including HSBC and RBS, are higher in sympathy and, despite all the travails of the sector, the big five have gained an average of 46% this year.
The aforementioned fiscal cliff optimism is the driving force this morning, however, with the signs of progress being gratefully received by markets.
With housing starts and building permits also on today’s calendar, there is hope that the week will see more excitement rather than the soporific trading that has held sway of late.
Ahead of the open, we expect the Dow to open up 10 points at 13,360.
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Financial Market Comments from Chris Beauchamp, Market Analyst, IG Index.
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