UK stocks are looking to extend recent gains, with traders keeping a broadly relieved but cautious eye on bank stocks as the weekend’s so-called Basel III meetings on European bank capital reform are mulled over.
GFT is quoting the FTSE 100 index to open up 8 points from Friday’s close, at a level of 5,509.
The German DAX 40 is expected to open up 6 points at 6,220, and the French CAC 40 index is forecast to open up 10 points at 3,682.
With the UK index at 4-month closing highs, having broken the 5,500 barrier for the first time in as many months, GFT’s forecast suggests that blue chips, although vulnerable to profit taking, will cling to the gains on this morning’s open.
INFLATION DATA PIVOTAL
Tomorrow’s inflation data, with a rise expected up to 3.2 per cent being the consensus expectation, is a potential pivot event for the week so volumes could remain relatively light ahead of this.
In Europe, the Greek PM’s comments at the weekend, that no new austerity measures are planned and that the deficit reduction measures are progressing well, will bring some relief to the markets.
Martin Slaney is director of global dealing operations at GFT.