Soaring temperatures, soaring markets

Heading into the close, the FTSE 100 is 70 points higher, as the rally moves into higher gear around the world.

  • Brexit talks fail to bother the markets
  • European stocks finally get going
  • Nasdaq roars back into life

We should start Brexit talks every day, it seems. The long-awaited beginning of discussions between the UK and the EU has been greeted with an impressive bounce for both UK and European stocks. The rally today has been broad-based, with European markets seeing a return of buyers after weeks of indecision. An ongoing fall in the euro is certainly helping to make life easier for European stocks, while further sterling weakness is helping to lift the FTSE 100. The summer is supposed to be a tough period for stocks, with gains fleeting in duration, but the solid pickup in risk appetite at the beginning of the week is very encouraging, despite the lightness of the macro and corporate calendars.

After a 3% drop in the past two weeks, tech is once again in favour among US investors. In this market, 3% evidently counts as a healthy dip, with the Amazon M&A from Friday still spicing up the session as well. It is odd to see all the problems that were supposed to be hamstringing markets disappear with barely a passing reference uttered, but we should not be surprised; this bull market has survived everything that could be thrown at it, and it has come back time and time again. It is hardly likely to be different this time.
 

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