Spreadex Market Analysis: Euro Stocks Head For 7th Day Of Gains

AM Analysis – “London-listed equities have been driven significantly higher” – David White
London-listed equities have been driven significantly higher on the open in sympathy of an accelerating GDP number from China. But traders saw immediate flow out of stocks in order to capture the overnight return. This notwithstanding, the market is higher and Basic materials outperform.

Gold remains supported this morning in line with the weakness we’re seeing in dollars. As investors consider slowly diversifying away from dollars over the long term, the prices of dollar-denominated assets could gradually inflate.

The sentiment in the market today is one of mild relief and back to business as usual. In spite of very few actually believing the US would default on its debt, most money managers had at least worked hard to prepare for the event. Now, the market is getting back to pricing in future value and observing performance.

PM Analysis – “Euro stocks head for a seventh day of gains” – Lee Mumford
European stocks head for a seventh day of gains, helped by upbeat growth data from China and as investors turn their focus to the latest string of corporate earnings. Earnings from both General Electric and Morgan Stanley beat Wall Street estimates today, helping US stock futures which are indicating a 30 point higher open.

UK mining stocks where helped this morning after it emerged China’s gross domestic product rose 7.8 percent in July to September from a year earlier. Latest figures from China add to signs that Chinese economic growth is stabilizing.

Gold continued to fall on Friday as investors took profits after the precious metal headed for the best weekly advance in two months amid speculation the Federal Reserve will delay tapering stimulus.

[The original articles by Spreadex can be found here.]

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