US stocks are on the verge of setting a new record on the last day of the week, although the rotation from growth to value stocks continues. Government securities are rising and the US dollar continues to weaken.
Globally, stock markets are on track to record a third consecutive week of gains, amid easing trade tensions and another round of stimulus from central banks. Higher-than-expected retail sales in the US in August added further optimism. The Stoxx Europe 600 finished fourth in a row, drawn from the banking and mining sectors.
The British pound is also on track to record its strongest weekly growth since May after news emerged that the UK and the EU could come to an agreement on the Irish issue. Next week Boris Johnson and Jean – Claude Juncker will have a meeting. The euro is also extending its winning streak after the ECB said they were ready to sustain economic growth, despite the internal split in the ECB’s Governing Council regarding the relief package. 10-year US bonds are almost 2%, which knocked the gold down.
Source: Bloomberg Finance L.P.
Graphs: Used with permission of Bloomberg Finance L.P.
Trader Martin Nikolov