This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Investors have been enticed back into the market by two main reasons this week: signs that China’s economy may be picking up pace again and the possibility that military action by the US against Syria might be avoided.
Russia has put forward a non-military way out of the Syrian predicament, proposing that Syria hand its chemical weapons over to the international community for destruction. Syrian Prime Minister Wael al-Halki has indicated Syria’s support for this proposal.
Details for such a solution are still being hammered out and the UN Security Council is scheduled to hold an emergency meeting later today.
Following on from yesterday’s better-than-expected Chinese export data, global stock markets have been given a further boost by news that Chinese industrial output increased 10.4% in August and retail sales rose 13.4%, both coming in higher than forecast.
Goldman Sachs, Nike and Visa have all benefitted today from the news that they will be added to the Dow Jones Industrial Average later this month. They will replace Alcoa, Bank of America and Hewlett-Packard. Goldman’s and Visa both rose around 3%, while Nike added 1.5%.