Markets in Europe and Asia made small advances as investors took comfort from comments about key central banks maintaining the status quo on supportive monetary policy and stimulus measures.
Federal Reserve Bank of Chicago President Charles Evans yesterday said he saw no reason for the US central bank to change its stance, and European Central Bank Executive Board member Fabio Panetta said there was no reason to reduce bond purchases.
“The FTSE 100 held firm at 7,036 with consumer goods and gambling stocks in demand. UK takeovers continue to gather pace, with Vectura and Spire Healthcare both receiving bids. This adds to a recent spate of deals, including offers for John Laing and UDG Healthcare,” says Russ Mould, investment director at AJ Bell.
“The UK stock market has started to regain favour with investors around the world after a long period in the doldrums and private equity is pouncing hard and deploying large cash resources by striking new deals. Trade buyers are also in the market, seeing opportunities to buy rivals and increase market share.”