European markets are mixed following recent gains, with concerns over the US fiscal position continuing to provide a drag on sentiment.
Meanwhile, European airlines are on the rise after easyJet saw better-than-expected summer demand.
Joshua Mahony, Senior Market Analyst at IG said, “UK stocks are flat today, despite an overwhelmingly positive session throughout Asia. While the PMI data released yesterday has helped boost sentiment around the July recovery, we are seeing ongoing fears of a less fiscally accommodative environment hamper that optimism.
“With major differences in opinion over exactly what any fiscal accommodation should look like, the ultimate decision from Congress will be a major determinant of market sentiment as we move forward.
“With the fear of a potential slump in economic activity that would come in the event of a fiscal withdrawal, the weakness we are seeing in the dollar this morning should come as no surprise.”