A more positive day for equities has benefited stocks on both sides of the Atlantic, while oi prices have rallied to a two-week high, says Chris Beauchamp, chief market analyst at online trading platform IG.
Stock rally re-energised on Alibaba news
“The news that Alibaba will split itself into six units has proven to be quite the tonic for investors, who have taken this sign of corporate activity as an indication that animal spirits are still active despite the turmoil of the past three weeks. Stocks have made further gains today after a mixed session yesterday, and the continued absence of any fresh banking crisis is another big tick in the risk-on column.”
Oil prices higher as recession fears ease
“Oil continues to clamber back from the March lows, but it is far from clear whether this short-covering rebound can be sustained in the medium-term. Demand forecasts haven’t really picked up, and with no sign of any production cuts coming the overall bearish environment still seems to prevail for now.”
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