The comeback in commodity stocks helped the FTSE finish on a positive note for once. Mining companies were in major demand in the UK, and across the pond the US markets are also being led higher by natural resources stocks. Wall Street shied and didn’t have the legs to reach 16,500 and the US 500 couldn’t crack 1930. Both markets have been broadly trading higher since the end of last month, but while the markets are below the high of February, negative moves can’t be ruled out.
Gold is still in its upward trend that has been in place since mid-January. The soft dollar is assisting the bulls, and the volatile swings in the equity and energy markets is making the safe haven even more attractive. Buying on the dip has been a popular strategy lately but traders are mindful of the US jobs report tomorrow. Gold has had a good run recently, but profit taking ahead of the NFP report is a possibility.
Oil surged after lunch as the weak dollar boosted the energy market. Brent didn’t quite make it to $36, and US light spent a brief amount of time north of $34, and now both markets are in retreat. The spike higher in oil this afternoon gives hope that the 2016 high will be retested, but the rapid decline that followed will keep traders cautious.