Second day of gains puts equities in a strong position
|Stock markets continue to rally, with the FTSE 100 bolstered by airlines and engineering stocks, and an 8% gain for strong-performing retailer Next.
- Equities continue to put Monday’s drop behind them
- European indices outpace US gains
- Next surges while Rolls-Royce, IAG and Compass also gain
Tuesday’s rally has extended into a second day, and Monday’s sudden drop looks more and more like a sudden air pocket that produced excitement but little lasting impact. At present it appears growth is being left behind, or at least technology stocks are, in part due to caution after Netflix’s results last night. European indices are sharply higher, recovering from a tough few sessions, led by the FTSE 100, which has managed to top the 7000 level once more. If Monday does turn out to have been a sudden summer squall the strength of this current bull market will be reaffirmed once again, and will also bolster the ongoing parallels with 2013 and 2017, which both followed on the heels of volatile years but were themselves examples of quiet but relentless equity market rallies.
‘Global rebound’ certainly appears to be the theme among the leaders on the FTSE 100 today, as the market’s outlook swings back to optimism from Monday’s pessimism. Rolls-Royce, IAG and Compass Group are all good names to pick for those looking for a renewed economic recovery, while REITs like Land Securities and British Land should see further inflows if more retailers post updates like the one from Next this morning. Speaking of Next, the trading statement this morning has been just the ticket for a share price that looked in need of some direction, having essentially gone nowhere since January, and today’s strong report across the board certainly provides a springboard for more good news into the second half of the year.
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