Could November turn out to be a bullish month for equities?
Following a tumultuous October on the stock market, investor confidence is slowly returning. According to a City Index, impending rate cuts and the upcoming US presidential election are both having a positive impact on sentiment.
Joshua Raymond, a market strategist at the spread betting firm, said: "The UK markets have opened slightly higher again this morning and there is a growing optimism that we could be in for a very good week indeed."
The FTSE 100 ended October down more than ten percent - its worst month since 1987. However, the index rallied towards the end of last week and this morning it climbed 38.2 points on opening, prompting hopes of a bullish November.
According to Mr Raymond, confidence could gather pace as the US election draws nearer. A win for Barack Obama could prove to be a turning point for the markets as a change in the White House could ignite a spark of optimism, he added.
However, he warned that with troubles remaining in the banking sector as soon-to-be-merged Lloyds TSB and Halifax Bank of Scotland announced further write downs, it is too early to say whether confidence will continue its upward trend throughout the month.
