Nasdaq surges, but FTSE 100 makes gains too
|Stock markets have gained on the penultimate day of November, with the FTSE 100 up 80 points as the close approaches.
- Equities stage a broad recovery
- Tech leads the way
- FTSE 100 bolstered by hopes of smaller-than-feared hit to economic growth
A more positive tone prevails across markets today, although some of the optimism in US stocks seen right after the open has been pruned back. The exception to this is in the Nasdaq, where FANG stocks have made impressive strides to the upside, as some of the old pandemic/lockdown trades come back to the fore. So much is yet to be determined regarding the new variant, which means the market is still in the ‘price discovery’ mode that kicked off on Friday, albeit in a much less dramatic version. The rebound today is a natural reaction to Friday’s drama, which in itself was perhaps overdone and a reflection of the half day and low volumes prevailing on Wall Street. Dip buyers are emerging across a host of sectors, and as ever it will take a while for the market to claw back all the losses suffered last week.
UK investors have spent the day picking up some relative bargains in global economy names like Compass, BP and BHP Group, as the risk aversion of Friday ebbs away. A less severe viral variant implies a more modest reaction from governments this time around, with a smaller hit to GDP than that seen last year. Some of Friday’s more extreme movements are thus being unwound today, although a hint of caution persists.
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