A quiet day of trading due to the US holiday has still seen struggling European indices make headway, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
European markets edge higher in light trading
It is getting to the point where European markets only make gains when the US is out of the picture. Europeans always seem to take over some of America’s positive outlook on life on days like today, with indices moving modestly higher. The Dax is higher, and even the beleaguered CAC40 is rebounding slightly. But the political crisis in France has not gone away, and threatens to unleash fresh volatility on global markets.
FTSE 100 higher but Aviva sinks
The prospect of more M&A activity in the insurance sector has failed to spark a substantial rally for the FTSE 100, but in the short-term the upside for the index looks limited given the near-300 point gain in two weeks. Aviva’s bid for Direct Line might signal the beginning of a more activist phase for undervalued UK stocks, helped along by the renewed weakness in sterling versus the dollar.
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