On a day that has seen two key economies fall into recession, it is odd to stock markets keep moving higher, but this market’s resilience continues to surprise investors, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
Stocks climb despite recession news
“Global stocks remain resilient despite the news that both Japan and the UK fell into recession in Q4 of last year. Today’s data has driven fresh hopes that rate cuts may be forthcoming in the UK, and with Germany also teetering on the brink of a recession, that the eurozone may see rate cuts sooner than anticipated.”
Still no sign of a pullback
“Tuesday’s US CPI data seemed to be the spark that would ignite a reasonable period of weakness in equities, but markets are rarely that obliging. While tech names are weaker today, there seems little news driving the move, and gains for the Dow and S&P 500 suggest it is more a period of rotation in global indices.”
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