The UK may be hit by fierce winds, but global markets have a found a way to ride above the clouds and enjoy a moment of calm in the sun. Markets across Europe and Asia are pressing ahead, following gains on most of the major US indices last night,” comments Russ Mould, investment director at AJ Bell.
“The FTSE 100 nudged up 0.2% to 6,735 with a reversal of recent trends. Stocks that had been winners earlier in 2021 such as housebuilders and banks were among the biggest fallers on Thursday, while miners and technology stocks bounced back after recent weakness.
“Inflation figures weren’t as bad as expected in the US, which caused investors to question if they’ve been worrying too much.
“Also helping to repair investor sentiment was Congress approving the $1.9 trillion US stimulus package. This will provide support, among other things, for small businesses and cash for eligible individuals, the latter expected to make some of its way to the stock market.
“It also paves the way for the US government to start working on a plan to spend big on infrastructure, which is a major driver for commodity markets and shares in mining and construction companies.”