UK and European markets are higher this morning extending this week’s rally as investors focus on earnings in Europe and US. Major companies reporting today include Voadafone and GlaxoSmithkline. Strong earnings reports on Tuesday from Alphabet (Google) and Amazon that both roared past estimates although the market was more than surprised at the announcement that Jeff Bezos was stepping down as Amazon’s chief executive.

The buying frenzy among US retail traders for heavily-shorted stocks abated on Tuesday with the popular names falling back sharply. This will provide some respite for hedge funds on the wrong side of the recent rally and frustrate late-comers who joined the Reddit-driven speculation.

The Italian stock-market was higher after former ECB leader Mario Draghi was said to be scheduled to meet with President Sergio Mattarella today and will be asked to form a new government.

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