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. See full non-independent research disclaimer and quarterly summary.
Finally a day without the Fed causing concern regarding the tapering of quantitative easing. The afternoon session has been very quiet; without any real economic data, the market has only had corporate news from equities to digest.
We have now reached the end of the second week in the US reporting season, and are expecting a broadly positive third week; companies from almost all sectors have now reported figures, and have come in with market-beating results.
The news earlier in the week that underlying consumers are having their spending power squeezed has quickly been forgotten. The higher levels of inflation and the lack of movement in the income market will ultimately see a squeeze as far as retailers are concerned, however as yet this has not seen a discount in the markets valuation of equities.
The other issue hanging over the market – the demise of Detroit – seems to have been conveniently forgotten. Possibly Monday will bring a fresh perspective.