Stocks higher even as UK falls into recession
|On a day that has seen two key economies fall into recession, it is odd to stock markets keep moving higher, but this market’s resilience continues to surprise investors, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
Stocks climb despite recession news
“Global stocks remain resilient despite the news that both Japan and the UK fell into recession in Q4 of last year. Today’s data has driven fresh hopes that rate cuts may be forthcoming in the UK, and with Germany also teetering on the brink of a recession, that the eurozone may see rate cuts sooner than anticipated.”
Still no sign of a pullback
“Tuesday’s US CPI data seemed to be the spark that would ignite a reasonable period of weakness in equities, but markets are rarely that obliging. While tech names are weaker today, there seems little news driving the move, and gains for the Dow and S&P 500 suggest it is more a period of rotation in global indices.”
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.