A bullish end to a bullish week as all UK markets closed in the green with the UKX and NMX up 0.3% on the day while the FTSE 250 continued to play catch-up closing up 0.6% and making new 2019 high and a new 6 month high while AIM All-Share gained 0.4% and made a new 2091 high.
GBP continues to trade sideways but closed up 0.2% while Brent crude made another attempt at the $72 ceiling and closed up 0.7% at $71.3
GAW continued to delight markets and advanced another 12% on earnings beat while Industrial Metals continued to forge ahead on stronger metals prices. Mining, Banks and A&D all made over 1% on the day. Today’s underperformers were mainly the more defensives like Utilities, Tobacco, Personal Goods which may add weight to the rotation into more risk assets now the Brexit fog has lifted for the medium term
Market sentiment clearly is showing investors are relaxed where the US CBOE VIX is languishing at 12.6, VFTSE has dropped to 10 and VSTOXX is at 11.9. The US AAII survey is set at over 40% Bullish above the historical average of 38%: when markets are this bullish they can be prone to sharp corrections and earnings start in earnest next week .