Following on from yesterday's equity market surge, London shares rose in early trading although the FTSE100 was showing signs of running out of puff mid morning. Our Trader writer Neil Wilson says: 'Stock markets rose this morning. To be a little more descriptive, it’s a sea of green on the boards with investors lapping up the $2tn stimulus package finally agreed by the United States Congress last night. Ahead of this the Dow Jones surged over 11 per cent, notching its best day since 1933. The DAX in Germany also climbed 11 per cent higher to breach the 9200 resistance. The FTSE 100 climbed 9 per cent. Japan’s Nikkei rose 8 per cent.
This morning shows more progress for equity markets although gains are more modest as it looks like the market found bid chiefly on expectations of the deal – buy the rumour, buy the fact more carefully at this point. The FTSE 100 rallied again through last Friday’s peak at 5428. The next step forward is to the previous Friday’s peaks at 5700.' For Neil's full Market Outlook, click here.
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