Indices steady despite US PPI rise
Stocks have taken the US PPI data relatively calmly, and hopes of a year-end rally are no doubt playing a part in this, says Chris Beauchamp, chief market analyst at online trading platform IG.
China hopes prop up FTSE 100
“China’s reopening has a long way to go, but it has been enough this week to provide a hope of improvement in the outlook. The FTSE 100 has seen some benefit from that today, edging back up after falling to a one-week low. IHG’s 3% rise on hopes of more good news from China has helped that move, helping to steady the index and put it on course for a move up towards 7600 as the year heads to its close.”
Stocks hold firm despite US inflation figures
“While US factory-gate inflation points towards the need for still more rate rises, stocks can now scent the potential for a rally into the end of the month. Such a bounce would repair more of the damage suffered in 2022, even if the post-Christmas blues do set in. The PPI data was unable to have much of a negative impact, although it does set us up for another hot CPI figure and hawkish Fed next week which might be much harder for markets to navigate successfully.”
Author
Michael Hewson MSTA CFTe
Independent Analyst
Award winning technical analyst, trader and market commentator. In my many years in the business I’ve been passionate about delivering education to retail traders, as well as other financial professionals. Visit my Substack here.
