US stocks gain on improved retail sales data

The FTSE has traded in the red once again, but we are seeing a stronger start to the day on the other side of the pond after a pickup in US retail sales.

  • FTSE in the red once again, while US stocks rise
  • Trump accuses Russia and China of currency manipulation
  • US retail sales boost perks up 2018 expectations

London continues to underperform as we begin a new week, with the FTSE 100 closing out in the red while US stocks push upwards. A series of coalition strikes in Syria brought about a somewhat choppy day for crude prices, with US President Donald Trump satisfied that the series of strikes over the weekend has provided the necessary deterrent to the Syrian regime. However, just when markets believed the tensions between the US and Russia were set to improve, Trump today accused Russia and China of currency manipulation, maintaining a focus on his two favourite sparring partners. In a period that has seen Russian associated firms suffer given the imposition of a raft of sanctions it comes as
 no surprise that we have seen Russian-owned steel producer Evraz shedding 7% over the course of today’s session.

US consumer data continues to improve, with the March retail sales figures providing a welcome boost for the first quarter economic outlook. With 2017 hurricane season proving the most expensive in US history, we are seeing spending rise in a bid to repair and replace damaged homes. With consumer confidence rising, and the impact of the tax reforms gradually taking hold, it is likely that we will see a greater confidence from US shoppers to invest in big ticket and luxury goods as we move through 2018.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

RELATED TOPICS