AM Analysis: “European markets looked to open firm this morning” – David White
European markets looked to open firm this morning in sympathy of momentum from a jobs number on Friday that showed continued and surprising strength in the US labour market. Rather than send investors running for cover at the prospect of tapering, investors were buyers of risk, making the whole state of affairs all the more unclear. Until now the market has sold against good news for the economy.
The early lead, however, was sold, leading shares back to where they closed on Friday. Among the biggest large-cap losers today are RSA and BSY, currently losing 12% and 9% respectively.
News that BT won the rights to televise the Champions League had money managers across the city dumping BSY. With analysts and commentators describing this as a game changer, finding reasons to own BSY seem harder to come by today than before.
PM Analysis: “European stocks continue to advance” – Lee Mumford
European stocks continue to advance into the afternoon, extending five weeks of gains as investors bet that the growing pace of the US economic recovery will offset any negative impact of the Federal Reserve’s likely move to cut stimulus.
With respectable non-farm payrolls figure on Friday, this has raised concerns the US central bank could soon start trimming its bond buying operations. The continued bond buying program has supported equities and helped them advance to new highs.
The euro rose against the dollar for the first time in three days, recovering from last week’s drop after the currency fell to a two month low. The recovery comes after investors believe the fall was rather excessive after the European Central Bank unexpectedly cut its interest rate to a record-low 0.25% percent.
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