Indices surge to new highs again
It has been another good week for equities, with new highs in the US and UK, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.
Softer inflation powers new market rally
Any worries about today’s US inflation figures have been dispensed with following a softer set of figures. This clears the way for next week’s Fed meeting to cut rates, not that that was ever really in doubt anyway. The afternoon has seen the Dow, S&P 500 and Nasdaq roar to new records, joined by the FTSE 100 which continues to bask in better UK economic data and corporate news. The week has seen further declines in volatility, as trade war fears ease. Now attention shifts to the Trump-Xi meeting, perhaps the one event that really has the power to provide a surprise.
Oil recovery continues
Oil prices seem poised to enjoy their best week in months, spurred by signs of higher US demand and the new sanctions on Russia. But any sustained strength in the commodity could risk a fresh round of output increases from OPEC+, keen to maintain dominance and (in Saudi Arabia’s case) maintain the friendship of the US and its mercurial leader. Oil bears have been trounced this week, but it feels like a temporary setback.
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