- US stocks at record highs on indications accommodative monetary policy is set to stay
- Bank of England statement at midday - forecasts likely to be upgraded for economic outlook
- Vaccine makers under pressure on patent waiver comments
Rotation and reflation remain the order of the day: The Dow Jones industrial average rose almost 100pts to a record close, whilst the S&P 500 edged up 0.1 per cent and the Nasdaq fell another 0.4 per cent as the big tech stocks had another choppy day. Energy and basic materials did well, while so-called bond proxies like utilities and real estate fell. US 10-year rates remain under 1.6 per cent. Tech, growth and momentum continued to face pressure. Cathie Wood’s ARK Innovation ETF fell another 1 per cent and trades about 30 per cent off its highs struck earlier this year, down 10 per cent YTD.
European stock markets bounced back strongly yesterday – the FTSE 100 rose 1.7 per cent to settle one point below its post-pandemic intra-day peak at 7040, having broken this earlier in the day. The DAX added more than 2 per cent to almost reverse all of Tuesday’s losses.