DailyFX European Market Wrap: The Global Rallies Continue
Britain’s economy grew more than expected in the fourth quarter of 2016, posting a growth figure of 0.6% rather than the 0.5% expected. But going forward there are concerns that the weakening Sterling will put pressure on inflation and squeeze wage growth. The FTSE just about managed to hold on to very modest gains along with the DAX while the CAC was lower in the afternoon session.
In the corporate world drinks’ giant Diageo was one of the top gainers on the London bourse after sales growth beat expectations. Shares rose more than 4% after the company reported a 4.4% rise in sales in its half year report helped by an improvement in US spirits.
Meanwhile Whitbread was one of the biggest fallers after the company reported disappointing trading at the London branches of its Premier Inn hotels business.
Concern surrounded Britain’s 72% state-owned bank the Royal Bank of Scotland and its enormous fines which the US authorities are demanding over the sale of financial products linked to risky mortgages before the 2008 financial crisis. The bank has set aside a further £3.1 bln to cover these fines.
Looking ahead, traders are eyeing the meeting between British Prime Minister Theresa May and US President Donald Trump, his first meeting with a foreign leader since his inauguration. Plus, Japan’s inflation report and France’s consumer confidence are due for release.
--- Written by Katie Pilbeam, DailyFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.