A strong showing from UK banks has helped the FTSE 100 to rise says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
FTSE 100 bolstered by bank rally
After a miserable end to last week, the FTSE 100 has managed to rediscover some momentum, rallying 1% thanks to a strong showing from the UK banking sector. The UK government’s sale of more of its stake is another vote of confidence in NatWest, another step in the long road away from 2008’s emergency government takeover. Meanwhile the banking sector’s day was further improved by Barclays, which is still basking in the glow of Trump’s win.
US markets still strong
Friday witnessed the Dow and S&P 500 hit new highs and reach new big round numbers, but the gains have continued today. The prospect of a Republican clean sweep continues to energise investors, and with earnings growth still healthy, investors are also looking forward to a fresh burst of M&A and IPOs that will provide fresh flows to US markets. The Trump train rumbles on.
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