Resurgent sentiment lifts equities
|The new week has kicked off with some resurgent optimism among investors, although that might prove hard to sustain in the medium-term, says Chris Beauchamp, chief market analyst at online trading platform IG.
Stocks rebound in Monday trading
“Friday’s PCE shocker certainly gave investors a fright, but the bargain hunters have returned in trading today. After the ‘good news is bad news’ theme of recent weeks, news of the UK-EU deal on Northern Ireland is one welcome development, and one that doesn’t involve the words ‘inflation’ or ‘interest rates’. But with a lighter calendar this week and earnings season firmly winding down it looks like bulls will have the chance to grab control in a way that has eluded them for weeks. But the overall outlook still seems to point towards high inflation and continued rate rises, something unlikely to prompt sustained gains for stocks.”
Oil prices creep lower
“Oil and stocks continue to move inversely, with the former down today after its recovery in the second half of last week. The retreat of recession fears has helped slow oil’s decline without the need for any OPEC intervention in production, but we are still a long way from seeing a recovery driven by stronger demand expectations.”
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