European equity markets rallied on Tuesday, showing strong gains and verifying the strong equity rally during 2013. The Dow Jones has also extended gains in today’s session, trading around 16500 points.
The London equity index surged higher to show its best yearly gain since 2009. We expect the recent uptrend in the global equity markets to continue in 2014, as strong economic data from the US and Eurozone have already spread optimism across the markets, showing potential for an increase in risk appetite in the New Year.
Banks and financials outperformed in today’s session in London. On the other hand, mining stocks came under pressure as gold and silver experienced their worst annual decline since 1981. Consequently, Randgold and Fresnillo ended on negative territory.
The Euro gave back yesterday’s gains and slid slightly lower on Tuesday, trading around the 1.377 area against the US dollar. Furthermore, the USD index rebounded to trade above the 80.0 level.
The equity report will not be published on Wednesday 1st January 2014, as markets are closed for New Year’s Day. Best wishes for a Happy, Healthy and Prosperous 2014!