Joshua Mahony MSTA
Scope Markets
US markets drive higher after a difficult week
“US markets are enjoying a welcome break from the selling pressure that has dominated this week thus far, with the Nasdaq surging upward after a five-day losing streak that has brought over 4% of downside. To a large extent this week highlights how traders have to somehow weigh up the benefits of a gradual Chinese reopening with the fears of an impending economic contraction in the year ahead. While the resurgence in equities seen today does highlight the interchangeable nature of market sentiment at the moment, the surge in natural gas seen since Tuesday does highlight how a cold snap in Europe could once again test the bulls if inflation fears resurface. ”
European airlines boosted by Bank of America upgrades
“European airlines are enjoying a day in the sun today, with Bank of American upgrades for the likes of Wizz Air, and IAG helping to lift the sector. Coming off the back of an incredibly tough time for travel stocks, we are finally seeing commercial passenger numbers tick up towards pre-pandemic levels. That is particularly the case in Europe and the US, with Asian travel remaining under pressure as Chinese travel remains constrained. The fact that the Bank of America have decided to issue such dramatic upgrades for IAG (+70%) and Wizz Air (+58%) highlight a growing confidence in a sector that has suffered under a blanket of travel and debt-based fears since early 2020. ”
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