More signs of cooling inflation lift stocks
|A second consecutive day of weakening inflation readings have helped lift US markets, but ex-dividend names have weighed on the FTSE 100.
FTSE 100 left out of market gains
“A swathe of ex-dividends on the FTSE 100 has meant that the index has been left behind as Wall Street moves higher once again. In addition, a continued wave of selling in the US dollar has meant that the risk-on moves have extended into currency markets, boosting sterling and the euro and hobbling European markets. But this temporary weakness in London might prove beneficial for some dip buyers, and with the macro outlook brightening for the time being the FTSE 100’s global stocks should continue to provide attractions for investors.”
Wall Street pushes up after fresh inflation data
“After so long spent discussing surging prices, investors have been treated to two weaker inflation gauges in two days. A drop in factory-gate prices, which might be viewed as a bit of a leading indicator for CPI, helped to solidify the view that CPI has finished rising for now, taking the pressure off the Fed and others to keep hiking rates so quickly. Stock markets have recovered their forward momentum, and expectations of a fresh turn lower are now weakening by the day.”
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.