The global rally in stocks moved up a gear this afternoon. With the fabled St Leger’s Day approaching, and concerns about Federal Reserve tightening receding thanks to a myriad of global problems, it looks like the dip buyers are still stepping in. Once again, bad news has become good news, for stock markets at least.
China’s dire straits imply problems for the US economy too, and the theory goes that this knocks back the chance of a September move on interest rates. With a week still to go, there is still the chance that this new thesis will be demolished, but for now equities seem the place to be.
The slow recovery in global equities has put life back into the asset management sector in London today. While markets are still well off their peaks it looks like bargain hunters are alighting on the likes of Aberdeen Asset Management (+3%) and Hargreaves Lansdown (+3%) as good value names, with the latter particularly in focus ahead of numbers tomorrow. Should the Fed hold off for another three months then these will be continue to be popular picks as the rebound continues.