Potential resolution of the US fiscal cliff

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- After strong gains yesterday, due to optimism on a potential resolution of the US fiscal cliff and the conclusion of Greece’s bailout, the markets are slightly lower in early trading today, which looks like investors taking some profits off the table for now.

- Currently the FTSE is at 5725, about 8 points down, the DAX is at 7132 so actually higher by 15 points whilst the CAC is at 3426 so about 5 points lower.

- Top of the leader board is Intercontinental Hotels who are trading higher by 2.3% at 1627. They announced yesterday that they bought 230,000 shares for cancellation, and also were upgraded to “overweight” at Barclays. The biggest risers dominated by personal goods stocks and travel and leisure stocks.

- The biggest faller so far is National Grid down 1.3%. Amongst the fallers are BT Group, Meggitt and ARM Holdings all slightly lower by just over 1%, the homebuilders all looking weak too.

- In economic data, the EUR PPI figures were released a little lower than consensus, and later on this evening the markets look forward to FED chairman Bernanke’s speech.

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