After the Dow Jones ended last week with an upwards swing, the European indices seem a bit more receptive to a rebound this Monday.
Despite the pound’s own climb, the FTSE appeared pretty perky after the bell. The UK index quickly rose more than half a percent, taking it within touching distance of 7300. As for sterling, it was up 0.5% against the dollar, taking cable back towards $1.404 and its best price in around 10 days, while the pound jumped 0.3% against the euro, to hit a 2 and a half week peak.
It’s another busy, busy week for UK earnings, something that might prove problematic for the FTSE if last week is anything to go by. However, for today at least, the index’s reporting companies appear to be giving it a helping hand. Distribution and outsourcing firm Bunzl (LON:BNZL) nudged 1% higher after posting a 13% increase in pre-tax profit and, at 4.3%, its best organic revenue growth for 11 years. Primark-owner Associated British Foods (LON:ABF), meanwhile, rose 1.2% as it seemingly managed to reassure investors that a 1% drop in interim like-for-like sales at its budget high street brand was only a temporary blip, highlighting the 1% increase in Q2 comparable sales.
Over in the eurozone trading was just as buoyant. The DAX was the region’s most robust index, surging nearly 1% to tickle 12600 for the first time since February 7th, while the CAC posted a respectable, 5350-crossing 0.7% increase. It’ll be interesting to see whether Mario Draghi’s testimony in Brussels changes the day’s cheery sentiment.
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