April stumbles towards drab end

ANALYSIS | 04/29/2016 09:16:58 GMT

Stocks stumble as US stocks appear elevated
Eurozone data paints mixed picture for Draghi
Market likely to be hesitant ahead of high event risk

Global stocks are expected to close out the month in a more sombre tone today, as the unwillingness of the BoJ to implement further easing has put a dampener upon risk sentiment. This week’s resurgence in crude has been astounding, with the dour Doha deadlock a distant memory. With US stocks near all-time highs despite uninspiring earnings, continued Chinese weakness and slowing US growth, it could be a time to once more sell in May and go away.

A mixed bag for Eurozone data has seen both economic growth and unemployment improve in the face of tumbling inflation. This really highlights the difficult position the ECB committee members find themselves in, where the lack of price growth once more heightens monetary policy expectations despite clear economic improvements.

As we close out April, many will be closing out positions ahead of a long weekend in the UK. The increased event risk associated with the first week of the month once more will be front and centre of market considerations, as we approach yet another US jobs report, due on Friday. It is clear the hesitancy and indecision evident within the past week could once more come to the fore given the existence of numerous high volatility data points.

Share: Analysis feed

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Editors’ Picks

AUD/USD rises to two-day high ahead of Aussie CPI

The Aussie Dollar recorded back-to-back positive days against the US Dollar and climbed more than 0.59% on Tuesday, as the US April S&P PMIs were weaker than expected. That spurred speculations that the Federal Reserve could put rate cuts back on the table. The AUD/USD trades at 0.6488 as Wednesday’s Asian session begins.

AUD/USD News