Better claims data powers rally in stocks
|The buyers have taken control of the session this afternoon thanks to a fall in weekly jobless claims in the US, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
Stocks continue to endure high volatility
“Investors are rapidly relearning the lesson that spikes in volatility do not immediately subside after the initial move. Both buyers and sellers this week have had to endure wide swings in price action, which will no doubt come as a surprise after months of quieter trading. Stocks seem to have found a low for now, though it is still early days.”
US jobless claims help to bolster risk appetite
“Weekly jobless claims data might well become the datapoint to watch until the next Fed meeting, as investors search anxiously for signs that that the US is headed towards a recession, or that it will swerve this dire outcome. This week’s data was better than expected, helping the cause of those that will argue last week’s payrolls were more a one-off than the beginning of a sustained trend.”
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