“An afternoon wobble shows that nervousness remains, but equities have moved through the week without giving back too much ground.”
Rally continues, despite growing scepticism
“The recent bounce from the lows is still going intact, if it has taken a knock in afternoon trading, although the darker global economic outlook means that many are wondering whether these gains can be sustained. Investors keep waiting for the other shoe to drop, but as yet stocks are not giving people the trigger to begin selling once again. This caution is perhaps the best foundation for more gains, since it doesn’t appear to be accompanied by too much euphoria, but with the Fed now openly talking about 50 basis point hikes it is sensible to ask whether valuations can keep rising even as the prospect of weaker growth looms ever larger.”
Oil moves up even as US ponders new reserves release
“Oil seems impervious to any potential bad news, with today’s move higher coming despite news that the US is pondering another release of petroleum from its strategic reserve. But such releases offer temporary respite from rising oil prices, much as the cut in fuel duty on Wednesday did for UK consumers. OPEC’s next meeting is perhaps the only near-term hope for a change in direction.”
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