Last week, China’s efforts to slow rising inflation and the ongoing concerns about European sovereign debt, both placed a drag on stock markets around the world. However a late rally in the US on Friday should translate into a positive open for European stocks this morning.
GFT expects the FTSE 100 index to start 20 points higher, at 5,753, with similar gains for the German DAX 30, up 18 points to 6862, and the French CAC 40, up 9 points to 3869.
In the coming days, the market will be looking for clarification of the proposed bailout for Ireland’s banking crisis.
It is hoped that these measures will dampen speculation about Portugal and Spain.
The economic calendar for the week ahead is light for the UK. In Germany the Ifo index is released on Wednesday.
Meanwhile in the US, all major data releases has been condensed into the early part of the week due to the Thanksgiving holiday on Thursday and early closing of markets on Friday. On Tuesday and Wednesday the US will release third quarter GDP, home sales, durable goods and personal income data, along with the minutes from November’s FOMC meeting.
The pick of the corporate news this week will come later today with an earnings update from Hewlett-Packard.
Mark Outten is senior dealer for GFT Global Markets UK Ltd