London and European stocks up as calm returns to markets

FTSE 100 up 0.4%, European stocks mixed

London and European stocks were up on Tuesday as calm returned to markets after a volatile start to the week. The FTSE 100 index of blue-chip stocks nudged up 0.4% to 7,446.67 points, while the broader FTSE 250 index added 0.2% to 20,144.31 points.

In Europe, the French CAC 40 index rose 0.3% to 6,434.20 points, while the German DAX index gained 0.4% to 15,300.57 points. The pan-European STOXX 600 index was up 0.3% to 433.47 points.

The positive sentiment in markets came after a surprise drop in UK unemployment data. The Office for National Statistics said that the unemployment rate fell to 4.2% in the three months to June, down from 4.3% in the previous quarter.

The data eased concerns about the health of the UK economy, which has been hit by the COVID-19 pandemic and the war in Ukraine. Investors are also hopeful that central banks will ease off on their aggressive interest rate hike plans as inflation starts to moderate.

However, analysts warned that markets could remain volatile in the short term, as investors continue to assess the impact of the war in Ukraine and the global economic outlook.

Conclusion

The return of calm to markets is a welcome sign for investors, but it is important to remember that the outlook remains uncertain. The war in Ukraine and the global economic slowdown are still major risks that could weigh on markets in the coming months.