Equities push higher following ISM data
|Stocks have continued their recovery, and seem to be adjusting to the idea of stronger economic data and higher rates, says Chris Beauchamp, chief market analyst at online trading platform IG.
Stocks rally into the weekend
“This afternoon has seen yet another strong piece of data, this time in the form of the ISM services PMI for the US, but this time around the mood appears to have shifted. Recent declines in equities, even the modest ones seen in Europe, appear to have removed some of the hesitancy among investors about putting more money into stocks, having trimmed valuations a touch. This combines with some less hawkish commentary from the Atlanta Fed chair and hopes that China’s parliament will lay out a solid growth target next week.”
VIX slump provides a tailwind for stocks
“A fresh decline in the Vix has provided a foundation for equity gains, and shows that investors continue to relax after their early February wobble. Fears about higher rates seem to have subsided somewhat, this gives scope for March’s positive seasonality to aid equities in their drive higher.
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