FTSE nudges higher on stimulus hopes
|The FTSE continues to stand its ground, while oil prices are pausing for breath after a big rally over the past 48 hours.
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Market still waiting for a catalyst
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Ashtead rises as stimulus hopes revive
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Inventory data bolsters Oil
When Article 50 day is not particularly exciting, it doesn’t bode well for the following day. Markets remain quiet, as investors continue to search around for a reason to buy into equities. The quarter end continues to provide some levitation, as fund managers look to spruce up their performance, but this is still a market in search of a reason, either to rally or to fall. Increasing optimism regarding the outlook for an infrastructure stimulus in the US is being seen, with Ashtead, likely to be a major beneficiary, moving 3% higher. It takes a lot of effort to kill off a narrative like the Trump stimulus, and it appears it will take a lot more than the demise of healthcare reform last
Friday to really suggest that all hope for a big plan later in the year has disappeared.
Oil has gained almost 6% from the lows of the week, as inventory readings continue to point to falling supply and OPEC keeps making the right noises about further production cuts. Bullish traders would probably rest easier if the price could move back above $50 but after such a rally it is not surprising to see some modest profit-taking. Ahead of the open, we expect the Dow to start at 20,642, down 17 points from last night’s close.
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