Stocks buoyed by Spanish CPI and weaker US data

Chris Beauchamp IG

Risk-on moves have dominated for another day, as hopes of weaker inflation in Europe prompt more upside in stocks, says Chris Beauchamp, chief market analyst at online trading platform IG.

No stopping stocks as rally goes on

“Fresh from their triumph yesterday, stocks have barrelled into a second day of gains, with the catalyst being the much weaker Spanish inflation reading this morning."

"Tech has led the way in the US, providing an indication of how strong risk appetite appears to be at present. A few more days of this and we could see investors really start to pile back into equities.”

Cooler US data viewed as good news

“A rise in jobless claims and lower US Q4 GDP growth also boosted the hopes of those expecting the Fed to be on pause at its next meeting and beyond. The dollar index continues to trade in a bearish fashion, and is on the cusp of a break towards the February lows.”

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Chris Beauchamp

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