Spreadex Market Update

Global indices have continued to surge ahead



Global indices have continued to surge ahead with both European and U.S shares posting impressive gains. Whilst the day stared out rather subdued, investors flooded the equity markets continuing the recent trend of a rotation out of bonds. There is a growing consensus that market participants overreacted to the proposed stimulus withdrawals with most traders of the view that shares can now be snapped up for bargain prices.

Encouragingly for the U.K, revised data released by the Office for National Statistics has revealed that the economy performed better than first thought at the end of 2011 and the start of 2012, suggesting that the much debated double-dip recession never happened. The FTSE 100 is seen trading up 102 points by 15:00 BST.

It would seem that the revised U.S GDP figure released yesterday has proved extremely bullish indeed. Serving as a stark reminder of the fragility of the economy, policymakers will be inclined to perhaps be more prudent when discussing stimulus withdrawal in the coming months.

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