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Shares Soar, But For How Long? ? Latest Market Analysis

Shares soared across the globe on Wednesday, with the FTSE 100 gaining 161.75 points (over 3%) to close at 5318.6, despite underperforming its European counterparts for the first session in quite some time. The main news of the day came out of Germany, where the country’s constitutional court upheld Germany’s participation in the first Greek bailout. Although this could be seen as a positive, it did however make it harder for the Germans to back future bailouts without parliamentary approval and make a proper resolution to Europe’s debt issues even harder to come by. Greek bond markets certainly agreed with a more negative view as the annual returns on ten year debt rose close to 20%, and it remains to be seen whether equity markets have reacted with too much confidence. Elsewhere and later in the day, economic data from the UK and US suggested more of a slowdown in growth rather than full blown recession which gave confidence to bargain hunters buying in to the recent falls, hoping that the fear of late had been overdone. A victim of the more confident outlook was Gold, which fell $67 to $1818, whilst Crude Oil was back in favour, rising 3.5% to $115.4. Sentiment, however, has switched-back so many times recently, that many will be looking for more stability before becoming too confident. At a stock level it was suffered that had suffered the most over recent weeks that performed best, led by Energy and Mining stocks, Industrials and of course Banks. Tullow Oil topped the lot, gaining 85p to close at 1171p. Outside of the FTSE 100 it was a good day for shareholders in local builder Barratt Developments, whose shares climbed 6.5%, to end the day 5p higher at 81p.

This was posted in Bdaily's Members' News section by John Dance .