Indices surge to new highs again
|It has been another good week for equities, with new highs in the US and UK, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.
Softer inflation powers new market rally
Any worries about today’s US inflation figures have been dispensed with following a softer set of figures. This clears the way for next week’s Fed meeting to cut rates, not that that was ever really in doubt anyway. The afternoon has seen the Dow, S&P 500 and Nasdaq roar to new records, joined by the FTSE 100 which continues to bask in better UK economic data and corporate news. The week has seen further declines in volatility, as trade war fears ease. Now attention shifts to the Trump-Xi meeting, perhaps the one event that really has the power to provide a surprise.
Oil recovery continues
Oil prices seem poised to enjoy their best week in months, spurred by signs of higher US demand and the new sanctions on Russia. But any sustained strength in the commodity could risk a fresh round of output increases from OPEC+, keen to maintain dominance and (in Saudi Arabia’s case) maintain the friendship of the US and its mercurial leader. Oil bears have been trounced this week, but it feels like a temporary setback.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.