DailyFX European Market Wrap: FTSE Tops Record High, Oil Surges
The FTSE hits a record high, France announce their new Prime Minister, Russia and Saudi Arabia back a production cut extension and Greece is back in recession.
The FTSE has now gained 20% since the Brexit vote on June 23rd last year, mining giants like Glencore, BHP Billiton, and Antofagasta are doing especially well. Although the rally has dropped a little throughout this Monday, the bourse is still above last Friday’s record close.
The DAX has dropped into the red but it’s still enjoying a record high as fears of a populist surge in Europe have faded. Regional election win for German Chancellor Angela Merkel's party. The Christian Democratic Union enjoyed a strong win in the country's most populous region yesterday with her party taking 34 percent of the vote.
Crude jumped 2% this Monday after the energy ministers of Saudi Arabia and Russia both agree that a production extension is the best way forward to progress with their attempts to reduce the global glut of oil.
Greece is back in recession as its GDP shrunk by 0.1% in the first three months of this year, following a 1.2% plunge in October-December.
--- Written by Katie Pilbeam, DailyFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.