The first day of trading this year got off to a promising start for European markets with stocks close to a 15-month high.
London’s FTSE 100 rose almost 16 points, while Germany’s DAX was up nearly 6 points on its closing last Wednesday.
The rising tide also spread to France’s CAC 40 – up four points after the New Year break.
For some analysts, it is a sign that a return to the good times might be just around the corner – but caution remains the watchword.
Nathalie Pelras, Fund Manager at KBL Richelieu, says: “We finished 2009 with a very strongly, more than 20 percent up. We thought we could start the new year in a similar fashion but there’s a risk we might be disappointed during the second quarter so we need to be careful about Europe’s markets in positive territory as any profits made now could be lost later this year.”
Asian markets too were broadly higher helped by a one percent jump in Tokyo. The Nikkei closed on a 15-month high but Chinese stocks struggled with real estate and banking groups bearing the brunt.