Morning market update from Interactive Investor

After a good start to the week, European equity markets are giving back a little bit of their gains in early trade. With the S&P closing within 1% of its highest ever level and crude oil trading above $50 a barrel, equity markets appear to have stabilised.

The current level of the VIX index (volatility measure) suggests there is little to worry about, but the S&P has now been at these elevated levels twice before only to be followed by subsequent sharp sell-offs which rippled across global markets.

The major question for investors is whether we can break through the barrier this time and if the rally in commodity prices and the general dovish market sentiment about possible US interest rate rises is enough to sustain markets against a backdrop of continued concerns on global growth and the increased political risks?

At 8.20am, the most actively traded blue chip stocks by Interactive Investor clients were as follows: Glencore, Royal Dutch Shell, Lloyds.

At 8.20am the most active small/mid caps were: Highlands Natural Resources, Sula Iron & Gold, Evraz.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.