The new week has begun with a swathe of losses for stocks, putting a dent in the recovery in risk seen so far this year, says Chris Beauchamp, chief market analyst at online trading platform IG.
Stocks push into the red
“A gloomy tone continues to prevail across stocks this afternoon, as investors continue to react to Friday’s job numbers. Friday’s report stalled the risk rally in its tracks, and put pressure on stocks in a significant way. For European markets which have enjoyed such a strong start to the year, this may be just a pullback, but for US indices there is a real danger that indices could reverse course entirely. Should the latest jobs report be followed up by more strength, a renewed push on tightening by the Fed could be the result.”
Dollar revival catches markets unawares
“After the big drop since October, some investors had been on watch for a dollar rebound, but had not expected it to develop this quickly. The payroll report has seen a flurry of short-covering, and this seems set to continue now expectations of a 2023 are being quietly shelved. “
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