Traders have managed to revive the risk-on rally this afternoon, putting the uncertainty of the past 24 hours behind them, says Chris Beauchamp, chief market analyst at online trading platform IG.
Stock rally revives despite central bank hikes
“It looks like it will take more than some hikes by central banks to deter investors from pushing stocks higher. After a shaky start this morning equities have had a better afternoon; European markets have clawed back most of their losses while the US is enjoying renewed strength. It seems the Fed was able to strike the right note after all.”
FTSE 100 held back by stronger pound
“A slew of ex-dividends and gains for sterling have meant the FTSE 100 hasn’t joined in the more optimistic afternoon session. However, this is likely to be a temporary development – the outlook for the global economy has improved even from where it was on Monday. This should see some renewed strength for banks and miners in the medium term, making the FTSE 100 an interest play on global growth.”
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