After the rise in European interest rates, Robert Tyerman assesses the market reaction and identifies opportunities for the coming months.

First published:
What Investment

Date of publication:
1 May 2011

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Stockmarkets like to see bad news out in the open, so that investors can weigh the probability and timing of potential recovery and improvements.

That is why the FTSE 100 Share Index dipped below the 6,000 level of late on uncertainty over the Bank of England’s room for manoeuvre following the European Bank’s long-awaited decision to raise Euro interest rates by 25 points to 1.25 per cent.

If British rates are also to rise, therefore, the sooner they make the move the better, whatever the initial impact on shares.

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