ETX Capital Daily Market Bite, 6th March, 2013: Stocks Upbeat Thanks To US Rally And Spanish News
March 6, 2013 11:44 am
March 6th, 2013, Daily Market Bite from Ishaq Siddiqi Market Strategist
European equity markets are pausing to catch their breath following the stunning rally on both sides of the Atlantic which saw the DJIA on Tuesday register a new all-time record high at the closing bell. The DJIA finished up 0.89% at its record close of 14253.77 while the S&P 500 finished up 0.96% at 1539.79, not too far off its all-time high. In Europe, the FTSE100 in London is comfortably sitting above the 6400 level while the DAX looks resilient above 7850.
With a backdrop of US sequesters, political turmoil in Italy and renewed euro zone debt contagion fears, stock markets so far this year have performed strikingly well. Much is owed to the continued central bank activism we have had for the past few years since the global financial turmoil of 2008.
The Fed’s continued accommodative stance with a pledge to retain ultra-easing stimulus measures until the US economy is self-sustaining is the primary reason behind this market rally on Wall Street. The US Sequesters, though not positive for economic growth in the long-term, are seen by some as a positive catalyst for stock markets as it would mean that the Fed now has little choice but to keep its pedal on stimulus measures for some time still.
And, central banks here in Europe may re-load their ammo this Thursday, with the BOE tipped by some to fire more QE in light of slowing growth and the ECB could cut rates by 25 basis points given the recent distress in financial markets after Italy’s inconclusive elections. As such, the attention today will be on the euro zone GDP figures for the 4Q which are likely to confirm that economy has failed to expand for the 5th quarter in 4Q. We also have US ADP jobs data this afternoon, ahead of the all-important monthly US nonfarm payrolls report due on Friday.
March 6th, 2013, Daily Market Bite from Ishaq Siddiqi Market Strategist
European equity markets are pausing to catch their breath following the stunning rally on both sides of the Atlantic which saw the DJIA on Tuesday register a new all-time record high at the closing bell. The DJIA finished up 0.89% at its record close of 14253.77 while the S&P 500 finished up 0.96% at 1539.79, not too far off its all-time high. In Europe, the FTSE100 in London is comfortably sitting above the 6400 level while the DAX looks resilient above 7850.
With a backdrop of US sequesters, political turmoil in Italy and renewed euro zone debt contagion fears, stock markets so far this year have performed strikingly well. Much is owed to the continued central bank activism we have had for the past few years since the global financial turmoil of 2008.
The Fed’s continued accommodative stance with a pledge to retain ultra-easing stimulus measures until the US economy is self-sustaining is the primary reason behind this market rally on Wall Street. The US Sequesters, though not positive for economic growth in the long-term, are seen by some as a positive catalyst for stock markets as it would mean that the Fed now has little choice but to keep its pedal on stimulus measures for some time still.
And, central banks here in Europe may re-load their ammo this Thursday, with the BOE tipped by some to fire more QE in light of slowing growth and the ECB could cut rates by 25 basis points given the recent distress in financial markets after Italy’s inconclusive elections. As such, the attention today will be on the euro zone GDP figures for the 4Q which are likely to confirm that economy has failed to expand for the 5th quarter in 4Q. We also have US ADP jobs data this afternoon, ahead of the all-important monthly US nonfarm payrolls report due on Friday.
Visit http://www.etxcapital.co.uk/
Find us on social media to be kept up to date with the latest ETX Capital news:
Facebook: https://www.facebook.com/#!/ETXCapitalGroup
Twitter: https://twitter.com/#!/etxcapital
LinkedIn: http://www.linkedin.com/company/445425?trk=tyah
ETX Capital’s RSS site: http://my.etxcapital.co.uk/
Related Posts: