LONDON- Head of investment Rebecca O’Keeffe interactive investor, sees a “positive” sentiment in the stock markets today as the global rebound continues.
Investors who are selling government bonds are putting their money rather into shares, O’Keeffe said,
“Not even the unexpected indictments from Special Counsel Robert Mueller could hold the rally back, as US markets closed higher for the sixth straight session on Friday, resulting in the best week for US equities in five years, she continued,
“The strength of the equity recovery has surprised some, but the weight of money coming out of bond markets is primarily finding its way into equities, which, for the moment at least, look far more attractive than other alternatives”.
European markets opened higher with Germany’s DAX up 0.35% and the French CAC gaining 0.27%.
Chief Market Strategist at FXTM Hussein Sayed, explained the reasons for this,
“Investor sentiment has gradually improved after fears of rising inflation sent most global indices into correction territory,” he said.
“The Cboe’s Volatility Index (VIX) ended Friday’s session below 20, suggesting that indictments from Special Counsel Robert Mueller against 13 Russian nationals for alleged interference in the 2016 elections did little to impact investor decisions”, he continued.
David Madden of CMC markets says that confidence is back in the global markets,
“Stock markets around the world rebounded last week as investors took at advantage of the relatively low prices of equities. Whenever there is a severe sell-off in the stock markets, traders spend a lot of time wondering is there another leg lower coming, or is it safe to get back in the water,” he said.
Photo Credit- The Guardian
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