Global stocks have rallied significantly in the last two sessions as upbeat sentiment returns to markets. Continued growth in earnings from major US banks and asset managers have seen investors take a break from concerns about growth and stagflation, focusing also on improving jobs data and a small decrease in the rate of growth of PPI.
But traders must remember that we are only into the first few days of the Q3 reporting cycle and financial companies are likely the least affected by the rapid growth in consumer and energy prices. Therefore trading is likely to continue to be choppy over the coming days as we get more insight into how profit margins have held up in different sectors, all whilst energy prices continue to reach new highs.
