Established in 1974
185,800 clients worldwide
Over 15,000 markets

US markets try to bounce again

Sentiment appears to be recovering across the board, as European indices claw back losses and US markets attempt to recover lost ground.

Wall Street sign
Source: Bloomberg

Having seen US markets embark on a rollercoaster ride yesterday, the omens did not look good for European markets today. Indices across the continent started the day deep in the red, but have steadily clawed back losses.

China’s injection of fresh liquidity has been seen as a positive move, as the PBoC looks to build on yesterday’s rate cut. The picture still looks unclear, with bulls and bears finely balanced, but so long as markets can hold above the lows of the week then a recovery may still be in prospect. Even the ECB managed to boost sentiment, as one board member hinted that an expansion of QE in the eurozone was still a possibility.

US durable goods were much stronger than expected this afternoon, proving once again that the US economy remains a touchstone of reliability in these troubled times. Fed member William Dudley added further to the general atmosphere of optimism with suggestions that a September rate hike was now much less likely.

Equity bulls on Wall Street now need to maintain momentum and avoid another sharp drop towards the end of the session similar to the one seen last night, or risk handing the initiative back to the bears. 

The information 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 Bank S.A. 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 and as such is considered to be a marketing communication.