Stocks claw back lost ground despite ADP miss
|US stocks have rebounded despite a weak private payrolls report, while utility stocks around the globe remain in demand thanks to the likelihood of imminent rate cuts, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
September slump paused for a second day
“What seemed to be the beginning of a fresh slump for global markets has been put on pause, at least for now. US markets have moved higher again this afternoon, having held the lows of the past 48 hours, while the Vix has slumped in afternoon trading. The bulls aren’t giving up just yet it seems. While the ADP report was worse than expected, investors seem to have learnt their lesson this time, avoiding putting too much store in today’s numbers ahead of tomorrow’s payrolls.”
FTSE 100 boosted by utilities
“The prospect of more rate cuts continues to put new life into the utility sector. Today’s UK leaderboard is populated by a number of the high dividend-paying names, as investors look to bolster their income streams. It’s a helpful recession defence too, given the strong visibility of revenues in the sector.”
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