Week ends with gains for stocks

Markets have ended the week on a firmly risk-on note, with stocks making further headway in the final session.

Stocks rally to end the week

“Investors have put the ECB hike and Powell’s warning about more rate increases firmly behind them, and the rally of the past two days has gathered strength. While the broader bear market most likely has further to run, it looks like the next bear market rally has also kicked into action. This provides scope for some significant short-term upside in stocks, although traders will probably only stick around for a while, and investors should be careful not to jump in too quickly or too enthusiastically.”

Markets keep calm and carry on

“UK investors will no doubt be feeling somewhat conflicted given the current events, and the BoE has followed the lead set by other institutions by postponing its rate increase. But otherwise it is very much business as usual, and next week will still see a significant focus on the UK with CPI and employment data, although it is unlikely to provide a real change in trend for sterling, which still looks to be on a downward path against the dollar.”