S&P and Dow average both trading at record highs.

The S&P 500 and the Dow average are both trading at record highs after the Federal Reserve refrained from tapering its $85 billion in bond purchases per month and economic reports and earnings released beat forecasts. In fact, some 75 percent of the 450 S&P 500 companies that have reported earnings so far this period have beaten analysts’ estimates.

Federal Reserve chairman nominee Janet Yellen signalled stimulus will be maintained until the U.S. economy improves significantly, boding well for other major economies. Yellen’s comments on Wednesday made clear her view that record stimulus measures should only be tapered after a sustained recovery, encouraging bullish investors who fear that any reduction in stimulus will trigger a sell-off.

Whilst calls for a correction have grown stronger in some quarters, what we are seeing is investors buying into any weakness that may emerge. What must be bared in mind is that traditionally, the markets tend to go up in November and December. With the S&P 500 surging 26 percent already this year, the benchmark gauge is on course for its biggest gain since 2003.

Meanwhile the FTSE 100 is trading just over 100 points off of the recent highs seen on November 30th at 6798.5 and there is little in the current technical picture to suggest that it is about to fall away. Additionally, British inflation unexpectedly dropped to its lowest rate for more than a year in October, falling to an annual rate of 2.2 percent in October from 2.7 percent in September.

On a more sombre note, the European recovery has suffered a serious setback after both Germany and France released GDP data that missed forecasts. In fact, France saw their economy shrink by 0.1% in the three months through September. This comes after President Francois Hollande failed to revive corporate investment in the face of one of the world’s heaviest tax burdens.

The figures, which follow France’s exit from recession in the second quarter, underline the issues Hollande is confronting as he tries to revive Europe’s second-largest economy and reverse an increase in unemployment that’s at a 14-year high. German GDP rose 0.3% in the same period after rebounding in the second quarter from a winter-induced slowdown.

The German economy is returning to a more moderate pace of expansion, according to the Bundesbank. That may restrain the pace of expansion in the euro area as countries including Italy and the Netherlands struggle to emerge from a recession. Growth in the third quarter was driven exclusively by domestic demand, whilst investment in equipment and construction increased and private and government consumption rose slightly.

U.S interest rates have been thrust into focus after Yellen admitted that policy makers could reconsider whether to cut the interest rate it pays on excess reserves, currently 0.25 percent. So far, U.S. central bankers have been concerned that lowering the rate would damage the functioning of the money market.

The FOMC has held its main rate near zero since December 2008 and pledged to keep it there as long as the unemployment rate remains above 6.5 percent and the outlook for inflation doesn’t rise above 2.5 percent.

Risers:

Genus, +4.5% Animal genetics company Genus said Friday it is trading in line with Company's expectations for the full year of mid to high single digit growth in adjusted profit before tax in constant currency, with the growth in profit being delivered in the second half of the year as expected. Genus' adjusted profit before tax for the first four months is in line with last year's performance. Trading in the period from July 1, to Nov. 14, for Genus' bovine and porcine customers have improved.

Tribal Group, +2.9% The education and training company, Tribal Group have announced that current trading remains in line with company's expectations for the full year. Systems business continues to make good progress, and is seeing a healthy level of new opportunities both in the U.K. and internationally. Solutions business is performing as anticipated, with continued encouraging opportunities in international markets offsetting a quieter domestic procurement environment

Capital & Countries, +1.8% Property company Capital & Counties Properties PLC said Friday that it remains on track to achieve estimated rental value, or ERV, of between 60 million pounds and GBP65 million on the Covent Garden estate by December 2015.

Frontier IP Group, +17% Frontier IP, the specialist in commercialization of university intellectual property, Friday announce the establishment of a new spin-out company, PulsiV Solar Ltd, under its long-term IP commercialization relationship with Plymouth University. Frontier IP received a 21% stake in PulsiV Solar and Neil Crabb, Frontier IP's Chief Executive, has taken a seat on its board. Shares react positively.

Armadale Capital, +2.8% Investment company Armadale Capital PLC has announced that it has entered into agreements to acquire the remaining share capital of Netcom Global Inc share capital, which will lead to 80% interest in the Mpokoto Gold Project in the Katanga Province, Democratic Republic of Congo. Armadale currently owns 22% of Netcom and will acquire the remaining 78% of the share capital of Netcom, which holds the rights to an 80% interest in the Mpokoto Project. Shares in Armadala rally almost 5 percent on the news

Fallers:

Ultra Electronics, -5.6% The defence, security, transport and energy group, Ultra Electronics, said Friday it expects for the year to be broadly in line with expectations, adding that 2013 revenue is expected to be slightly down. The Group is encountering a number of headwinds, mainly in the U.S. government-funded market, the combined effect of which is that 2013 revenue is expected to be slightly below 2012 revenue

Rotork, -2.1% Rotork PLC, an actuator manufacturer and flow control company, said Friday that it has performed well during the period from July 1 to Nov. 14, adding that it continues to expect to make further progress in the full year with margins at similar levels to the prior year. Revenue for the third quarter was 13.0% higher than the prior year. Cumulative revenue to Oct. 27, was 13.1% ahead of the prior year

Antrim Energy, -40.4% Antrim shares dive, down over 40 percent after they announced their interim statement. They are considering selling its 35.5% stake in the Causeway field in the North Sea as its finances are being squeezed by hedging losses, an extended pause in production and overruns in Capital expenditure. The company also told investors there are currently significant doubts over the company’s ability to continue as a going concern.

ValiRx, -12.8% The life science company, Friday announced that it has raised 1 million pounds with a placing of 307.7 million new ordinary shares at a price of 0.325 pence per share. Funds will be used to further advance the company's programs.

Pantheon Resources, -5.9% Oil and gas exploration company Pantheon Resources PLC posted a slightly narrowed pre-tax loss during the full year-end, adding that Chairman Sue Graham will step-down and will be succeeded by John Walmsley. The Company posted pre-tax loss of £700,095 during the year ended June 30, compared with £703,602 a year earlier.