Morning Report courtesy of Spreadex

0 mins. to read

European markets opened confidently today as better-than-expected manufacturing data from China provided an excuse for investors to dive back into the equity markets in full throttle.  Although some analysts have pointed out that they expect a period of consolidation owing to the near all-time highs of equities as well as restrictions in the flow of cash from China, investors nevertheless still think that there are bargains out there and have adopted a buying mentality today.

And yet, perhaps this is not necessarily a solely headline driven market some may assume the rally has arisen from.  If one considers that the debt issues in the US have been provided with a temporary resolution, the Eurozone economic area is slowly recovering and even manufacturing data from China rose to a seven-month high in October.  Thus, before bears voice their concerns that the rally today has arisen as a result of investors looking for any excuse to hold equities then perhaps one should remember that it’s been long time since investors have actually had a series of sound economic fundamentals to entice such optimism.

Take part in our poll

Of the stocks covered by Master Investor in the weekly Small Cap Round Up, which ones do you hold?

Comments (0)

Comments are closed.


Get real investment insights from some of the best minds in the business - with our free Master Investor Magazine.