As ever it is not just economic news which drives the markets, but political too.
This article in the FT could be a key one for the next few months. China is set to expand its acquisition strategy in resources, oil and financial services. With the still beaten down prices of Western Assets and the burst commodity bubble, they would be wise to get a move on and buy soon.
The £2.3 trillion they have to spend is quite a war chest. This no doubt makes some stocks on the UK markets look ripe for take-over. In particular oil and gas and resources companies are a tthe fron tof the queue, Caledon Resources may be first and yet there is still a discount to its expected sale price in the current share price. Another could be Dana Petroleum and perhaps even a move to break up Heritage Oil's merger with Turkey's Genel.
In the smaller caps, Africa has been a recipeient of much Chinese attention so many of the companies there which are developing and exploiting resources may well be fair game for a Chinese take-out.
Even if the markets do turn down again, these plays are going to keep this sector relatively strong, unless oil prices go back to $30 again from the current $60.