The US holiday has resulted in a quiet session for European markets, though the FTSE 100 did manage a small rise this afternoon, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
FTSE 100 edges higher
“A quiet session without the US has been enlivened by the return of UK inflation to 2%. As is so often the case, the headline figure doesn’t tell the full story, and higher services inflation has dampened hopes of an August cut by the BoE. Nonetheless, the FTSE 100 managed to eke out a small gain in thin trading, taking its cue from the stronger Asian session overnight.”
Eurozone markets weaken
“The first two days of the week saw the wave of selling in European markets halted, but warnings about fiscal stress in the eurozone have caused traders to hit the sell button once more. Eurozone governments of all types face a host of challenges, but are unlikely to find popularity if they go down the fiscal austerity route. France’s current troubles could be a template for what’s to come, putting further pressure on European markets.”
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