Stocks bounce back after Credit Suisse takeover
After a shaky start, equities have rallied, while a weaker dollar has helped the FTSE 100’s mining contingent to bounce, says Chris Beauchamp, chief market analyst at online trading platform IG.
Stocks claw their way back into the green
“What began as a very ‘sea of red’ kind of day has turned into a rebound, with stocks clawing back losses. Ultimately, while it is a shock to see a global bank disappear so quickly, it is reassuring to see governments and regulators moving quickly to seal off any source of further contagion. And after the ECB last week, investors seem relaxed about the prospect of a 25bps hike from the Fed this week, though they will hope for some fairly dovish commentary to go with it.”
Softer dollar helps mining stocks
“The big miners dominate the London leaderboard today, as the dollar drops back on expectations of a more dovish Fed on Wednesday. This is still the big unknown, but there is good reason to think that the Fed will look to rein in its hawks following last week’s turmoil. Should the hawks win out, then we can expect more fireworks.”
Author
