Q1 is going out with a bang, as stocks recoup more of their March losses and end the quarter on a high, says Chris Beauchamp, chief market analyst at online trading platform IG.
Stocks bound higher into quarter-end
“Equities seem set to round off the quarter on a very solid note. The lower PCE figure in the US was just what the doctor ordered, and provided investors with reason to take a sunnier view of the outlook as they peer into Q2. Having escaped without any more bank failures this week, hopes will rise that the crisis of March is now behind us.”
Strength in risk assets brightens the outlook for Q2
“Price tends to lead sentiment, so we should see more flows back into stocks in Q2, reversing March’s sharp outflow. Uncertainty about the Fed’s next move will prevent sentiment from becoming too bullish, but it looks like the upside surprise in stocks could be the story of 2023.”
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