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London open: Stocks advance as trading resumes after Easter break
UK stocks gained on Tuesday as trading resumed following the Easter break and investors shrugged off negative session in Asia.
“European markets are opening the shortened trading week on a positive note this morning as traders starting to pour money back into stocks,” said Markus Huber, senior analyst at Peregrine & Black.
“Much of last Thursday’s hefty losses were less the result of actual negative news but rather traders being cautious ahead of the long weekend especially in light of the recent terror attacks. Consequently with very few new major developments over the weekend some of the previously closed positions are being reopened this morning.”
In company news, RSA Insurance rallied after Deutsche Bank upped its target on the stock.
Pharmaceuticals giants GlaxoSmithKline and AstraZeneca were both on the front foot after drug approvals in Japan.
EasyJet flew higher after Bank of America Merrill Lynch upgraded the stock to ‘buy’.
On the downside, shares in AG Barr edged lower after the London-listed drinks maker posted a rise in full year profit but a dip in revenue
In economic data, Japan saw a mixed batch of economic data including an unexpected rise in unemployment, a better-than- forecast increase in household spending and a worse-than-anticipated increase in retail trade.
Still to come, the S&P/Case-Shiller index on US house prices is due at 1400 GMT and US consumer confidence is due at 1500 GMT.
Investors will also watch out for a speech by Federal Reserve Chair Janet Yellen later in the day for further clues about the central bank’s next policy move, particularly after the hawkish comments last week from Fed officials.
“While the markets are currently far from convinced that the Fed will raise interest rates again at its April meeting – only 12% chance of a hike priced in based on Fed Funds futures – this could change dramatically this week,” said Craig Erlam, senior market analyst at Oanda.
“Fed Chair Janet Yellen is due to speak today on the Economic Outlook and Monetary Policy at the Economic Club of New York luncheon and her comments are likely to be followed very closely, especially given the more hawkish tone we’ve had from a number of other policy makers over the last week.”
