European equity markets managed to build on yesterday’s bullish session, pushing higher as investors reacted to economic data releases. UK indices were supported higher after better than expected final Q3 GDP figures were posted, indicating that the economy expanded 1.9% y/y which was better than the median estimate of 1.5% growth according to Bloomberg data. London’s blue chip index managed to close 0.21% higher today after briefly swinging into negative territory early on.
Wider European indices also managed to post steady gains, with the DAX gaining 0.63% and the CAC closing 0.38% higher despite the EU receiving a ratings downgrade from Standard & Poor’s from AAA to AA+, citing the EU’s disagreements over budgetary support mechanisms.
After Wednesday’s announcement that the Fed would initiate tapering in January sent US markets to record highs, momentum continues to build as investors welcomed the better than expected third quarter annualised GDP growth, which came in at 4.1% against median expectations of 3.6%, according to Bloomberg data. US markets continue to gain traction, as the S&P 500 and DJIA push towards fresh intraday highs. At the time of writing the S&P 500 was trading 0.6% higher while the DJIA was up 0.5%.