ND EUROPEAN shares are headed higher on the open this morning, on continued “show me the money”-style relief that Greece has finally pressed the button for the IMF/EU aid package.
GFT is quoting the FTSE 100 index to open up 36 points from Friday’s close, at a level of 5,759. The German DAX is also expected to start higher, up 40 points at 6,289, and the French CAC is forecast to open up 10 points at 3,971.
Any gains made on the open today may prove difficult to sustain, for the FTSE at least, as the prospect of a hung parliament becomes increasingly likely and with it the uncertainty which that brings. A period of prolonged range-bound movement on the index is the call as we enter into the political and even economical unknown, with mounting resistance forming around the 5,800 level and support at around 5,600.
Blue chip results out this week in the UK, include the three oil giants BP, Royal Dutch Shell and BG Group. BP will be the most closely watched, with particularly strong numbers expected. Friday is the busiest day of the week for economic data, with such heavyweight numbers being released as the Employment Cost Index, University of Michigan confidence index and GDP from the US. Another highlight will come on Wednesday by way of the FOMC rate decision. The benchmark rate will surely remain unchanged but there is room for action on the discount rate.
Martin Slaney is director of global dealing operations at GFT.