Positive start in Europe as US earnings season begins in full swing

<p>Watch the latest market news from the floor of City Index with Joanna Love on Tuesday, 9th July 2013. Losses may exceed initial deposits. Markets […]</p>

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Watch the latest market news from the floor of City Index with Joanna Love on Tuesday, 9th July 2013.
Losses may exceed initial deposits.

Markets were strong across the board this morning after several companies reported positively at the beginning of US earnings season. This sparked optimism for recovery in the economy and investors seem to have found security in this, despite prospective plans for the Fed to scale back on quantitative easing.

The UK Manufacturing Production figure released at 9.30am this morning was worse than expected, but this did not have much impact on the markets.

The banking sector was up 1.5% – boosted again by yesterday’s news that the government had rejected tougher leverage ratios.

RBS was on top of the FTSE leader board as it was anticipated that small shareholders may be able to veto Osborne’s good/bad bank split plan. Shares were up 12 pence, reaching a high of 302.70. Mining stocks were also pushing the FTSE index higher, with strong performances from Anglo American, Fresnillo, Vedanta and Rio Tinto.

By 9am the FTSE was at 6527, the DAX at 8050, and the DOW at 15293.

In currencies, the pound was down slightly against the euro but remained flat again the dollar. We are not expecting any other economic figures today of high importance but investors will no doubt be looking ahead to the FOMC tomorrow evening.

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