Europe’s markets all rallied with the exception of Zurich on Wednesday, with Madrid and Milan the star performers, both rising nearly two and a half percent.
All this despite some very mixed company news, with drug giants Roche and Glaxo Smithkline publishing drug failures and worse than expected results. Banks did badly, but the euro rose against the dollar and yen, and there was a sterling sell-off after the budget came out, with it losing ground to both the dollar and euro. But even London put on nearly one percent, rising back above the 4000 mark. By the afternoon news US house prices were rising again led to the rally: oil weakened slightly and is still stuck below 50 dollars a barrel.