It has been a great day for European stocks but on Wall Street the mood is more muted thanks to weaker economic data, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
FTSE 100 shrugs off any pre-election nerves
“UK stocks are in a positive mood on the final day of election campaigning, with most investors looking forward to the installation of a Labour government with a large majority, providing stability and removing political risk from the outlook for the time being. When the election is out of the way, the next focus will be a possible UK rate cut, helping to give the economy a much-needed shot in the arm. Prominent among today’s gainers have been miners, boosted by a weaker dollar and rallying commodity prices.”
European equities make solid gains on hopes of French election stalemate
“While US markets have begun the session quietly thanks to the poor ADP payrolls and ISM number, stocks in Europe continue to roar higher. As expected, a swathe of candidates in the French elections have stood down, allowing for a united front against the Far Right. While this means France is set for a period of political deadlock, it does mean that neither left nor right will have the upper hand. In the short-to-medium term, this should help European equities to keep moving higher, though the longer-term view is less encouraging.”
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