Heading into the close the FTSE 100 is 35 points higher, while the mid-cap FTSE 250 has soared by 200 points. 

European markets have been cheered by the continued dovish stance of the ECB and their decision to ‘significantly’ increase the pace of bond purchases for the second quarter. This has, unsurprisingly, put pressure on the euro, which has edged back against the US dollar, but overall the continued support for the eurozone economy has bolstered investor enthusiasm for eurozone assets. It would be nice to have a full-blown fiscal stimulus effort to go with it, but investors must be content with a supportive ECB for the time being. The positive atmosphere has flowed over to the FTSE 350, with UK mid-caps enjoying a particularly good day on expectations that a rebounding eurozone economy will lift UK small and medium-size firms thanks to a solid recovery in demand. 

The losses of earlier in the week appear to be a distant memory, particularly in the US, where indices have been busily clawing back the ground ceded on Monday and Tuesday. Earnings season appears to be providing sufficient good news to keep indices at their elevated levels, with few unpleasant surprises thus far. 2021 continues to surprise in its lack of volatility, marking a sharp contrast to the madness of 2020. US unemployment claims are on the right path, and existing home sales are holding steady too, providing a solid economic backdrop for ebullient stock markets. 
 

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Feed news

Latest Forex Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD: EU vaccine deal helps extend US NFP-led run-up to fresh multi-day top towards 1.2200

EUR/USD begins the week with an uptick to refresh highest levels since February 26, wobbles around the top of late. EU battles for more vaccines as jab jitters disappoint the bloc members, Brexit, sluggish data add to the fears. DXY marked the biggest daily losses in six months after NFP debacle.

EUR/USD News

GBP/USD: Bulls on top in the open, but W-formation is compelling

GBP/USD is a mixed picture for days ahead as the price extends higher but leaves a bearish chart pattern on the daily time frame. The monthly chart is bullish while above the support structure as the price runs deeper into the supply territory.

GBP/USD News

Dogecoin: Defending 21-DMA is critical for DOGE after Musk calls it a ‘hustle’

The selling pressure in the Dogecoin (DOGE/USD) remains unabated for the second straight day on Sunday, as the corrective mode from all-time highs of $0.7605 remains intact. DOGE bulls remain hopeful as 21-DMA support holds, with RSI still bullish.

Read more

GBP/USD: Bulls on top in the open, but W-formation is compelling

GBP/USD is a mixed picture for days ahead as the price extends higher but leaves a bearish chart pattern on the daily time frame. The monthly chart is bullish while above the support structure as the price runs deeper into the supply territory.

GBP/USD News

S&P 500, Nasdaq Week Ahead: Fed to markets, we have your back never mind the jobs report!

Well after a fairly sluggish start to the week things certainly sprang to life on Friday as a brutal employment report was a catalyst for a strong rally! Go figure. Well, the logic is actually not as stupid as it first appears. Bears have been hibernating and face possible extinction.

Read more

Majors

Cryptocurrencies

Signatures