The FTSE 100 (^FTSE) opened in the green on Wednesday morning in London, even amid pessimistic growth forecasts by a top think tank.
The UK is headed for five years of lost economic growth according to a prediction by the National Institute of Economic and Social Research (NIESR). Alongside that, the government is failing in its goal to “level-up” outside of London.
Gross domestic output is lagging and unlikely to hit levels seen before the covid pandemic before 2024, the think tank said.
The FTSE was up 0.6% by around 8.50am in London. Meanwhile the DAX (^GDAXI) rose 0.8% and Paris’s CAC (^FCHI) was up 1.2%.
European markets took the edge off a lower close in the US and a mixed close in Asia.
Read more: How to avoid an inheritance tax bill
“If you look at the fundamentals, we believe that they will continue to remain highly strong,” said Naeem Aslam, chief investment officer at Zaye Capital Markets. “This is because if one pays attention to the recent commentary coming out of the Federal Reserve’s members, there is more of a dovish tint in that, and it seems like the interest rates are likely to stay where they are for the time being.”
Stay tuned for updates on our live blog:
Watch: Business Lookahead: soft landings and stimulus
Download the Yahoo Finance app, available for Apple and Android.
