US Close 12 Jul 16: FTSE at 11 month high, US stronger on expectations of more stimulus to come.

European shares rallied for the third consecutive session on Monday on the back of reduced political uncertainty in Britain. Theresa May will now succeed David Cameron as Prime Minister after her rival Andrea Leadsom pulled out. Cameron confirmed he would resign on Wednesday and avoid a leadership vacuum over the next couple of months. The prospects of further stimulus from the Bank of England later this week supported markets. British home builders recorded strong gains while European steelmakers also rallied on signs of consolidation in the sector. The FTSEurofirst 300 index rose by 1.5%, the German Dax rose 2.1%, while the UK FTSE rose by 1.4%. In London trade, shares in BHP Billiton rose 3.2% while Rio Tinto rose 3.3%.

 

* US sharemarkets rallied on Monday with the S&P closing at a record high, as investors continued to react to last week's employment report. Gains were broad-based with seven of the major 10 S&P sectors higher. The S&P industrial and consumer staples sectors hit record highs. Investors waited on Alcoa which reported after the close. The Alcoa result beat expectations although second quarter revenue was down 10%. The Dow Jones index rose by 80 points or 0.4%. The S&P 500 index rose by 0.3% while the Nasdaq rose by almost 32 points or 0.6%.

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