There were no official buys given by our Coppock indicators for major markets this month - not surprising given the continued surge in stock markets around the world. Fourteen of the 24 markets covered by our data hit new highs late in October, buoyed by the resolution of the US debt debacle, the prospect of continued QE and further signs that China's growth engine is not, as had been feared, running out of steam. Despite that, Hong Kong's Hang Seng - a proxy for China - did give a sell signal, a rapid reversal from last month's unofficial buy on worries that central bankers in the People’s Republic were looking to rein in credit. ‘Seesaw’ has been a much used word to describe the index’s performance over the last month.
Looking beyond the major markets, and there were also signs that the ebullient mood among investors is breathing life back into emerging markets. Brazil, which had been hit hard by tapering fears, gave an official buy signal - partly thanks to the improved data from China, its key trading partner. Back in the UK, and the battered FTSE Oil & Gas sector also gave a buy signal, helped along by the well received news that having beaten profit forecasts BP would be increasing its dividend. The sector has come under pressure to return more cash to shareholders, so BP's move may signal a wider trend across the industry that could reverse its serious underperformance against the FTSE All-Share over the last 12 months.
