The FTSE 100 is getting off to a strong start after US stocks enjoyed their best day in nearly three months last night.
London’s blue-chip stocks are set to rise over 20 points on the IG platform, after rising nearly 44 points to 7,062.29 earlier in the week, according to Spread-Betters on the IG platform.
The previous day’s advances were all made at the end of the session, inspired by the thundering start on Wall Street, which bounced back greatly from the bloodletting triggered by the Federal Reserves’ new falconry addiction.
By the closing bell in New York, the Dow Jones was up nearly 587 points, up 1.8%, the S&P 500 1.4% and the Nasdaq Composite 0.8%.
After Fed officials predicted last week that interest rates would rise twice from their current record lows after getting a terrible case from Willies last week (and Federal Reserve official James Bullard even said on TV that it did may have to be the end of 2022). instead of 2023) we shouldn’t have been surprised by market reactions after a weekend of reflection and some slightly reserved comments from New York Fed’s John Williams, said Oanda’s market analyst Jeffrey Halley.
“If the last 15 months have taught us one thing, it is the power of buy-the-dip strategy as central banks continue to pour free money into the world financial system. Last night was a classic example of when the major unwinding of the global reflation trade after the FOMC / Bullard was abruptly stopped and vice versa, ”he said.
“The US dollar fell overnight, stocks, especially the unpopular S&P and Dow Jones, rallied, gold rallied and the US yield curve steepened as long-dated bond yields rose again.
“So has the global reflation trade been completed? We don’t know for sure. Is inflation temporary or sticky? Again, we don’t know and I’m not sure if it really matters, ”Halley said, confused.
While stocks rose, Bitcoin fell, with a significant 11% drop overnight.
However, it made up some losses in the Asian session, rising 3.60% to $ 32,760.00 this morning in Asia.
Halley’s feeling was that Bitcoin was “approaching oversold territory”.
All about the markets
- Pound – down 0.2% to $ 1.3901
- Gold – flat at $ 1,783.05 an ounce
- Oil – Brent crude rose 0.2% to $ 75.06 a barrel
- Bitcoin – down 5% over 24 hours to $ 32,555.34
6.50 a.m.: Early markets – Asia / Australia
Stocks in the Asia Pacific region were mostly higher on Tuesday, with the Japanese Nikkei 225 rising about 3% in afternoon trading and largely bouncing off a 3% decline on Monday.
The Shanghai Composite in China gained 0.59% while the Hang Seng index in Hong Kong fell 0.23%
In Japan, the Nikkei 225 rose 2.94% while the Kospi in South Korea rose 0.73%.
Stocks in Australia rose, with the S & P / ASX 200 trading 1.58% higher.
READ OUR ASX REPORT HERE
Proactive Australia News:
() has completed its reverse circulation (RC) drilling program on the Company’s wholly owned Marble Bar lithium project, approximately 150 kilometers southeast of Port Hedland in the Pilbara region of Western Australia.
‘s () (FRA: FWL) recent drilling at its Kalkaroo copper-gold-cobalt deposit in South Australia returned consistent widths and high grades of copper-gold-sulphide mineralization.
() Subsidiary CONNEQT, Inc. has entered into a cooperation agreement with LifeQ, a leading global provider of biometrics and health data from portable devices.
() has received a mining lease (M70 / 1406) on the Beharra High-Grade Silica Sand Project, approximately 60 miles south of Geraldton, in Western Australia.
() (FRA: E4N) shares rose 69.45% to A $ 0.061 on a heavily oversubscribed placement that raised $ 3.65 million.
‘s () new assay results have confirmed the latest high grade nickel-copper-sulphide discovery on its flagship high-grade Mt Alexander project in the northeastern gold fields of WA.
() (FRA: PX0) will commence a diamond core drilling program on the high grade Caribou Dome copper project in Alaska, targeting new high priority targets for massive sulphide copper mineralization.
Auteco Minerals Ltd () () has secured a speculative buy rating and A $ 0.22 price target from a recent report from Ltd related to the Carey discovery at the Pickle Crow project in Canada.
() () (FRA: MA3) has appointed highly respected Newfoundland geologist Kerry Sparkes to the board as a technical advisor.
TNG Limited () (OTCMKTS: TNGZF) has taken another important step to advance its green energy strategy after reaching an agreement with an international technology company and specialist in green hydrogen to explore commercial opportunities with vanadium redox flow batteries ( VRFB).