Shutdown deal hopes drive market rebound
|Once more a brief selloff has been halted before it can turn into something more serious, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.
FTSE 100 at new record
Last week’s orderly selloff threatened to become much worse at times, but the theme of the last six months reasserted itself late on Friday. Since May buying momentum has appeared whenever this market rally has been in danger of tipping into a correction. Friday saw that move develop, and it was given fresh force by the signs of a shutdown deal emerging over the weekend. A year after Donald Trump’s election, it is clear that markets are still firmly in rally mode, having gotten over their April tantrum. Investors remain keen to buy the dip.
Oil prices stumble but gold surges
Oil prices joined in the bounce this morning, but that excitement has given way to renewed losses, a clear sign that oversupply concerns continue to animate traders. Meanwhile gold is at a two-week high, shrugging off the October correction. Here too there is plenty of appetite to buy the dip, reanimating the momentum driven move, though expectations of more Fed cuts provide the fundamental story.
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