European markets have started the 2013 journey with strong gains where investors applauded the resolution of the fiscal cliff drama where the House of Representatives voted in favor of the fiscal cliff. On Tuesday night the House of Representatives echoed the same message as the Senate did a day earlier by approving the deal with 257-167 votes. All major indices are hitting their highs for the new year, especially the FTSE 100 which topped the 6000 mark since July 2011.
Most of the gains were spotted in banks and mining stocks in FTSE 100 where mining companies like Rio Tinto have gained more than 5.80% and HSBC is trading with a gain of 2.54%. European indices are cheering the fiscal resolution by trading up where Stoxx Europe has jumped by almost 1.4% and DAX is up 2.00%, CAC 40 is +2.31% and IBEX 2.79% at the time of writing. Once again, most of the gain among these indices is seen in banking stock where Spain’s Banco Popular is trading up with a gain of 3.4% and Societe Generale with a gain of 4.2%.
DISCLOSURE AND DISCLAIMER: The Above Is For Informational Purposes Only And Not To Be Construed As Specific Trading Advice. Responsibility For Trade Decisions Is Solely With The Reader.
By Naeem Aslam