RE: Glencore finally breaking out?11 Aug 2021 18:20
The FTSE 100 closed at an 18-month high on Wednesday, as stocks rallied around the world on stimulus hopes and easing inflation fears.
The FTSE 100 (^FTSE) rose 0.8% to close at 7,220, its highest finish since March 2020. The index remains around 200 points off levels it was trading at before the onset of the COVID-19 pandemic.
In Europe, Germany's DAX (^GDAXI) was up 0.3% and the CAC (^FCHI) rose 0.5%.
Global sentiment was helped by signs that US inflation could be topping out. Consumer price figures published 1.30pm Europe time showed US prices growing at 5.4% in July. That was flat on the prior month and broadly in line with forecasts.
"With US CPI having beaten expectation for most of 2021, it’s almost a surprise to see the numbers come out in line with expectations," said Mike Owens, a global sales trader at Saxo Market.
"It certainly appears that the market was set up for a beat as we’re seeing USD on the backfoot and bond yields fall back since the figures came out. We’ve had a predictably positive reaction from equity futures with growth and value stocks both taking something from the numbers, and the debate over whether this current bout of inflation is transitory will continue.”