European markets have made more gains this afternoon and the FTSE 100 is holding around its recent highs, though caution persists in US markets, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
FTSE 100 edges higher
The FTSE 100 continues to consolidate around one-year highs, leaving it well-placed for additional gains. Sterling weakness has played a key role in the short-term move, but in the longer-term it looks like we could see further gains as international fund flows continue to return to UK markets thanks to the better outlook for the UK economy. European markets have made further strides too, with investors still keen to pile in even after the huge gains thanks to the more attractive valuations on offer.
Dow makes gains but tech stocks struggle
The Dow charged out of the gate this afternoon but has slowed after a couple of hours, but tech stocks have continued to struggle. Quarter-end and Friday’s inflation reading are likely to keep any bullishness in check, but the fundamentals point towards further gains in April and beyond.
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