The FTSE 100 is 70 points higher heading towards the close, as European markets stage a rebound from Monday’s losses.

  • Europe soars while US markets find the going harder
  • Worries about the Fed loom over Wall Street
  • M&A rebounds, sending several FTSE 350 names sharply higher

European markets have been much more adept at holding on to their gains today than their US counterparts, where pre-FOMC nerves have clearly put pressure on the S&P 500, Dow and Nasdaq. At first it seemed like the selling was done across the globe, but there is still a broad pocket of nervousness on Wall Street. Evidently investors there are concerned that the tapering announcement may come with hints of what the Fed might do next regarding rate increases as well, something much more concerning for markets. The powers of recovery displayed by Wall Street should not be underestimated however – a late-session recovery for the US yesterday helped stabilise markets globally, and a second one today could provide the fuel for another rebound that helps investors to stop worrying about the Fed. 

M&A is certainly alive and well it seems judging by today’s announcements, as Entain shoots to the top of the FTSE 100 and travel groups National Express and Stagecoach make strong gains as well among the mid-caps. Coupled with the mystery bid for easyJet it seems that there are plenty of people around the globe who think any worries about a slowing global economy are overdone, and that there is more good news to come on the economic front that can lift both earnings and stocks

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