Britain's FTSE 100 kicks off the new year at a record high and European shares look set for further gains as risk appetite continues to grip global stock markets. Investors, though, are still bracing for a bumpy year ahead. Ivor Bennett reports.
Even without the fireworks, it would be fair to say markets have started the year with a bang. Stocks the world over on the rise, and the bulls of 2016 showing no sign of a January hangover. SOUNDBITE (English) JASPER LAWLER, SENIOR MARKET ANALYST, LCG, SAYING: ''It's largely momentum. nothing has materially changed in the weeks over the holidays. It's really just those same factors that were driving us forward at the end of last year." The main one of course is Donald Trump and his promise to boost spending. There are also promising signs from China Strong manufacturing data helping to send European stocks to their highest in a year; the FTSE to an all time peak. but market confidence can be a fragile thing and some doubt its staying power once Trump takes office. SOUNDBITE (English) JASPER LAWLER, SENIOR MARKET ANALYST, LCG, SAYING: ''I'd be very surprised if we don't see a fairly substantial wobble, if you want to call it something like that, in the first month or so of the year, as we start to reconsider whether some of these possibilities can come true.'' Trump is one worry but there's Brexit too. And the kind of climate that could tempt the bears out of hiding.