Eurozone Stability Outlook Improved by G20 Meeting
City Index June 20, 2012 2:22 PM
<p>The FTSE has opened down a third of a percent or 17 points to 5571. Bear in mind, though that most of this is down […]</p>
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- The FTSE has opened down a third of a percent or 17 points to 5571. Bear in mind, though that most of this is down to number of companies going ex-div today and we’re still holding on to most of the gains experienced from the surprise two and a half year low seen in inflation yesterday. The benefit here being that this could help offset any potential negative increases in inflation caused by potential further quantitative easing and so this increases its likelihood.
- Across the continent the DAX is down by the same amount at 6343 and the CAC is down a quarter of a percent at 3108.
- Drilling down into our Index broadcaster ITV was up 3.5% in early trading amidst reports of a possible takeover bid.
- Down at the bottom of the board we have severn trent down 7% although they were one of aforementioned companies going ex-div so nothing to panic about there.
- Figures this morning have the UK unemployed claimant count change at 9:30am and the Bank of England Monetary Policy committee meeting minutes giving clues on what, if anything, might be happening to interest rates.
- Finally, optimism for eurozone stability was bolstered following the G20 meetings yesterday with the two main points being support for allowing the European stability mechanism to buy sovereign bonds in order to reduce borrowing costs for indebted nations and softening on credit agencies downgrading powers and therefore influence they can exert economically and in some cases politically.