IG Market Comments

In mid-morning trading the FTSE 100 is up eight points at 6737, although it is once again being left in the dust by European indices.

European equity markets are still riding on the back of Mario Draghi’s remarks that full-blown QE could be on the cards, should be it be called for, while a surprise uptick in French economic data has added to the positive news from Germany yesterday to provide a fresh catalyst for equity buying. In London, shares in Kingfisher fell through the £3 mark as difficult trading conditions in France, which is its biggest market, took the shine off the encouraging numbers from the British and Irish divisions. Screwfix nailed its numbers to the post as the wholly-owned subsidiary revealed a double-digit jump in third-quarter LFL sales; this was the bright spot in an otherwise dreary update. House prices in the UK may be cooling but people’s interest in property prices is still red hot as Zoopla reported a 33% jump in website visits. Shares in the property portal increased by 2%, and the company still has a long way to go before it catches up with rival Rightmove. De la Rue was true to its word as profits dropped by 31% in the first half of the year. The shares in the bank note printer stood their ground as the figures met the previously lowered guidance.

In the US, we are calling the Dow up 25 points at 17,842 as the US rally knows no bounds. US GDP is on the calendar for the afternoon, and while the data is expected to show a revision to growth for the third quarter, markets should retain their poise and remain unconcerned, especially as the low-volume rally into Thanksgiving maintains its pace. Yesterday’s US session was something of a snore-fest, a condition that is only likely to intensify as the week goes on.