The call this morning is for stock markets in Europe to open higher following a turn-around by US markets to close in positive territory on Friday evening, despite weak non-farm payrolls data.
GFT is quoting the FTSE 100 index to open up 13 points from Friday’s close, at a level of 5,758. The German DAX 40 is expected to open up 15 points at 6,962, and the French CAC 40 index is forecast to open up 8 points at 3,758.
The reverse to the up-side in US markets in the face of the disappointing jobs number is expected to have a modest carry-through on shares here on the open.
EUROPE IS KEY FOCUS FOR TRADERS
Nevertheless the ongoing debt problems faced by Europe will remain the key focus for traders, not least tomorrow’s vote by Irish politicians on the government’s austerity budget, where a “yes” vote is required to trigger the international aid rescue package. Eurozone finance ministers are meeting today and tomorrow amidst rumours they will increase the size of its €750bn bailout fund.
Also watch out today for the release by the ECB of numbers on their latest round of bond buying in their Securities Markets Programme, where we will learn exactly how much the bank ramped up its government bond purchases.
Martin Slaney is diirector, of GFT Global Dealing Operations.