Equities are dropping again following more good economic news in the US, and both the dollar and oil prices are on the move higher once more, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
Stocks fall again despite government shutdown progress
“US lawmakers seem to be on course to avoid a government shutdown, but solid durable goods orders in the US have spooked investors. Good data is very much ‘bad news’ for stocks right now, as it means there is no pressure on the Fed or other central banks to think about loosening policy. September’s current swoon has been driven by the realisation that high rates are going to be a feature well into 2024, absent a recession which, as yet, refuses to appear on the horizon.”
Oil prices surge again
“The latest consolidation in oil prices seems to have run its course, with both Brent and WTI making solid gains. It makes no sense to stand in the way of oil’s rally, since there is no indication of any increases in supply from key producers, and economic data continues to support the idea of more growth.”
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