'Falling oil prices and global yields push stock indices higher for a third week in a row', says Axel Rudolph, Senior Market Analyst at online trading platform IG.
Major equity indices trade around their July peaks
“A forth straight week of falling oil prices - by over 12% - and rapidly declining global yields have given risk-on sentiment another boost. European equity indices have seen further strong gains as the Eurozone posts the largest current account surplus in over two years. Their US counterparts fared less well as rising US jobless claims on Thursday and poor results from Walmart pointed towards a possible cooling of the US economy."
Disappointing UK Retail Sales
“Despite much weaker-than-expected UK retail sales the FTSE 100 gained over 1% amid an oil price recovery from four-month lows. Unexpectedly strong US housing starts and building permits, a forward-looking indicator of future construction, didn't quite manage to keep US stocks in the green on the last day of their three-week gain."
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.