The FTSE is trading in the green once again, despite another move above 3.1% for US 10Y yields. Meanwhile, Ocado is in the spotlight amid a potentially transformative deal with US firm Kroger.
- European indices punch higher despite rising US treasury yields
- Italian coalition refute idea they will seek an exit from the eurozone
- Ocado in favour after markets scan their prospects after merger announcement
European markets are on the rise once more today, with the FTSE 100 heading towards the record high after breaking to a four-month peak this afternoon. While European affairs are looking increasingly optimistic, the US picture remains under pressure, with the US 10Y yield rising above 3.1% to hit a seven-year high.
Italian political concerns are back at the top of the agenda today, with the Five-Star movement and League coalition expected to announce their policies after days of discussions. The clear risk was always going to be how eurosceptic tendencies manifest themselves, and today’s rebuttal of a possible eurozone exit for Italy is helping arrest the decline in Italian bonds, with the 10Y stabilising after its recent decline.
Ocado shares have rocketed higher, with today’s announcement wrapping an incredible six-months for a firm that has been one of the most shorted stocks in the UK over recent years. The 230% rise seen over the past six-months confounds the doomsters who saw the firm being left behind amid the entry of internet giant Amazon into the supermarket sector. Despite being 75% up at a point, much of the day’s gains have been surrendered thanks to the expectations that the firm is expected to remain loss-making for some time yet. However, with the Ocado share price temporarily jumping ahead of the likes of M&S and Morrison’s, it is clear that today feels like a defining moment for the firm.
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