Equities pause for breath

Heading into the close, the FTSE 100 is ten points higher, as equities continue to recover the ground lost earlier in the week. 

Aerial view of London
Source: Bloomberg

As the month winds to a close for UK investors, and news flow dries up around the globe, most traders have taken the chance to trim positions and book gains after strong rallies in recent sessions.

On a day of little news, there is scant reason to chase stocks higher, but that does not mean the bounce has come to an end. September usually sees the start of a bumper season for equities, so bullishness should grow as the new month gets underway. Miners have led the way higher in London, with a smattering of oil stocks that have found some support following yesterday’s spike in crude prices.

As we look to next week, attention will remain fixed on what China and the US have to offer. PMI figures from the former will be crucial, especially since we get both the official and the private sector assessment of the situation, while non-farms on Friday will garner the usual attention.

The weekend’s Jackson Hole summit should not unduly disturb matters, especially given that September is now practically a non-starter for rate hikes. 

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.