Markets in London rallied on Friday morning, extending gains off the back of a bad week for sterling and following Asia higher.
The FTSE (^FTSE) had finished around 2% higher on Thursday, and ticked up 0.9% as markets opened. Thursday’s rally was the biggest since November last year.
In Europe, the DAX (^GDAXI) rose 1% and the CAC (^FCHI) was 1.1% after the opening bell.
On Thursday, the European Central Bank (ECB) raised the three key interest rates by 25 basis points — a move that was expected among traders and tracks other major economies. Rates in Europe are now at the highest level since the euro was launched in 1999.
Meanwhile, the pound (GBPUSD=X) skirted around the $1.23 mark. Sterling being weak typically makes stocks listed in London more attractive to foreign buyers with relatively stronger currencies.
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European markets had caught the good mood from China, following a surge in the price of iron ore as well as data from the retail and industrial sectors indicating an end to growth worries that have lingered in recent weeks.
“While the numbers today are pleasing from the perspective of risk-appetite, investors will probably want to see a trend of better data start to develop before being lured back into Chinese assets with any conviction,” said Tim Waterer, chief market analyst at KCM Trade.
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