Home Business NewsBusiness FTSE 100 up on China data and US stimulus

FTSE 100 up on China data and US stimulus

by LLB Editor
15th Mar 21 10:29 am

It is like the markets have remembered to be happy about economic recovery again. For a time the focus was so fixed on accompanying inflation risks, the upside from a rebound in the economy as countries reopen was lost, says AJ Bell investment director Russ Mould.

“Impressive growth figures from China and the passage of Joe Biden’s $1.9 trillion stimulus package in the US helped briefly launch the FTSE 100 over the 6,800 mark for the first time since January on Monday morning.

“The scale of China’s recovery from the pandemic, which beat analysts’ expectations, offers an imperfect trailer for what might happen when there is a full reopening in the West.

“Those concerns over rising prices haven’t disappeared entirely though, with bond yields still elevated and sentiment remains fragile.

“A notable trend in recent months is that the gold price seems to have lost its credentials as a hedge against inflation, even if the price has stabilised above $1,700 per ounce. Oil prices remain robust with Brent crude still close to the $70 per barrel mark.”

Leave a Comment

You may also like


Sign up to our daily news alerts

[ms-form id=1]