Stock markets head upwards

EUROPEAN stock markets are headed for a positive start to the week, building on the momentum gained from Friday’s better-than-expected US unemployment rate.

GFT is forecasting the UK’s FTSE 100 to open up 10 points from Friday’s close, at around 5,610. The German DAX is expected to open up nine points at 5,886 and the French CAC 40 is quoted around 4,017, up five points.

With the FTSE now at its highest since the Lehman brothers collapse, a bullish tone prevails.
Investors and traders have been reassured by the improving Greece situation, relief that the US economy is recovering and confidence that interest rates aren’t about to suddenly take off. There’s relatively little in the way of scheduled economic data out this week to derail the optimism, save for possible US retail sales on Friday, but watch out for a potential refocus away from Greece’s debt crisis and towards Spain and Portugal.

Martin Slaney is director of global dealing operations at GFT.