Stocks have managed to pick up the pace this afternoon, with Wall Street in particular given new life by weaker US inflation figures, says Chris Beauchamp, chief market analyst at online trading platform IG.
Inflation weakness prompts renewed gains in stocks
“The afternoon has seen stocks bolstered by weaker PPI figures in the US, along with a rise in jobless claims. This means that the market is once again back to hoping that more bad news will tilt the Fed further towards a pause beyond the next meeting, though hopes for a ‘no change’ at the upcoming get-together remain dim.”
Earnings season poised to start
“But all this is just an appetiser ahead of earnings, which promise to take centre stage for the next two weeks at least. Tomorrow’s bank figures of course will focus on the prospect of any further crisis in the sector, and hints that credit conditions are worsening could also go into the ‘bad news is good news’ pile (as long as there isn’t too much of it).
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