Investors In A Trance As Stocks Shuffle Higher
MarketPulse | Feb 20, 2017 02:36AM ET
European equity markets are expected to open higher on Monday, although trading is likely to be relatively light given the US bank holiday which helped drive similar conditions in Asia overnight.
It would appear we’re still in a kind of trance at the moment whereby equity markets continue to shuffle higher in the hope that Donald Trump will deliver on his fiscal stimulus, tax and deregulation plans and yet, there’s no conviction in the rallies. This isn’t overly surprising given the amount of political risk at the moment, but you wonder how much longer we can remain in this state before we wake up.
That’s not necessarily to say markets are going to collapse or even enter correction but I think we’re nearing the point at which investors may start demanding something a little more concrete. It’s difficult to ignore the moves in gold and the yen alongside this, which typically accompany more risk averse conditions. Perhaps it just reflects underlying uncertainty which is a concern.
Gold is actually trading a little lower so far today, having interestingly failed to break above the high from 8 August, despite coming very close. The next big test for gold will now come around $1,216.73, last week’s lows, with a break through here possibly triggering a move back below $1,200 towards $1,180.63.
As mentioned above, with it being a bank holiday in the US today, we could be looking at a slightly quieter session. We have some scatterings of low level data throughout the day, but nothing that I would expect will cause too much of a jolt in the markets. The Reserve Bank of Australia minutes from its recent meeting, released overnight, will likely be the next event of note.
Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.