Risk appetite still ahead at half-time

Risk appetite still ahead at half-time

Mike van Dulken, Head of Research at Accendo Markets commented to clients this morning:

Equities have made a solid start to the new week, month, quarter and half. Financials factoring in more hawkish central bank rhetoric is helping sentiment. Add to this GBP and EUR off their highs, Oil extending its rebound and largely solid PMI  Manufacturing (China, Europe) and the set-up is supportive of risk appetite following the recent market pullback. The FTSE 100 is higher thanks to Banks (more hawkish central banks) and Miners (oil, metals), very similar to how the index finished last week. Offering limited drag are defensives like RB, BATS, BT, DGE, CPG and GSK as a result of increased appetite and a still strong GBP. Germany’s DAX outperforms on EUR weakness and gains for Lufthansa, Banks (Deutsche Bank, Commerzbank) and Industrials (ThyssenKrupp and HeidelbergCement).The FTSE 100 is off its 7300 lows, making a bullish attempt to break back above 7350. The DAX 30 is flat around 12400, still in a 7-month uptrend. Dow Jones Futures, at 21420, continue to bounce towards recent highs. Gold’s downtrend sees it fast approaching 6-month support at $1234.”

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Categories: News
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