Investors await German Constitutional Court’s ruling on ESM
Mansur Chowdhury September 12, 2012 4:00 PM
<p>- Midway through the trading week and we have seen the UK main index slightly lower in early trading. It appears investors were awaiting the […]</p>
The video cannot be shown at the moment. Please try again later.
- Midway through the trading week and we have seen the UK main index slightly lower in early trading. It appears investors were awaiting the German Constitutional Court’s ruling on whether it would allow Germany to join the ESM, which is a fund worth around 500bn euros and is for a bailout for debt-ridden countries in the eurozone. As the news broke earlier that they have, we’ve seen a surge in demand and major markets have turned positive.
- The FTSE is at 5805, so higher by 15 points, the DAX is at 7385, up 70 points, and the CAC is at 3560, up 25 points. So a positive reaction seen to the ruling. RBS and Lloyds lead the way, up 3.5% and 2.2% respectively. Barclays are also higher by 1.1%.
- Sage Group are also amongst the leaders, up by 2.3% on the back of M&A rumours. The biggest faller is interdealer broker ICAP, which received a broker downgrade from Morgan Stanley and are currently 2.2% lower at 330.70p.
- European economic data is likely to dominate, with the UK jobless claims out a bit later this morning, as well as EU Industrial Production figures.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.