Why did the markets go up so much?

Glen_Clark

Thrugelmir wrote: »

We're not the only news story in town.

So whats the other one?
As I understand it, world shares have been boosted by QE - but UK shares have not been boosted by as much as the rest of Europe. Its hardly a ringing endorsement of the Tory Government - except in the Tory press?

hjd

Markets don't like uncertainty, so the rise would have been due at least in part to the fact that the next Government is known and not subject to horsetrading/negotiation.

JohnRo

Glen_Clark wrote: »

So whats the other one?

US jobs data?

Kendall80

JohnRo wrote: »

US jobs data?

I'd recommend the UK Reuters site for up-to-date business and global markets info.


As john suggests the US jobs data has had a global impact. The global bond selloff has also ceased it would appear.


The rise may not last though as we have the greek issue still to be resolved. I believe theres a large debt payment due this week. Longer term there is the increased possibility of a fed rate hike this year assuming continued good US econ data.

Thrugelmir

Glen_Clark wrote: »

So whats the other one?
As I understand it, world shares have been boosted by QE - but UK shares have not been boosted by as much as the rest of Europe. Its hardly a ringing endorsement of the Tory Government - except in the Tory press?

Broaden your outlook. Companies announce good results and bad results. There are take overs and demergers. Directors buying shares and selling shares. Markets move daily on hundreds of thousands of individual transactions. Mining shares took a dive today in London. Given the % of the index in this sector would have had a negative impact.

ManAtHome

Kendall80 wrote: »

Longer term there is the increased possibility of a fed rate hike this year assuming continued good US econ data.

I thought the party was continuing due to the ongoing crap US data, therefore less chance of a FED hike.

What's not to like - carry on off-shoring jobs, economy droops, yellen doles out even more cheap dosh, use that to buy back your shares, trebles all round...

chronicsaver

It was 2 things.

1) UK Election - Though Con are promising an EU referendum which should see some volatility in the markets, markets historically consider Conservatives to be better for business

2) As people have suggested, US Jobs Data came out yesterday and it matched expectations. Key thing though was that the unemployment rate continues to fall hence global stocks rallied yesterday.

For the week ahead:

O think the market is going to correct itself a bit. Greece is still on the horizon and if this week is to go by, any whiff of them leaving the Euro market players are running for the hills.

Glen_Clark

chronicsaver wrote: »

, markets historically consider Conservatives to be better for business

Yes I think they were, but things have changed a bit
The current Chancellor seems more interested in borrowing and austerity to fund his obsessive housing market interventions. They have been good for landlords, but not much else. UK share prices have lagged behind the world average during his tenure.

redux

NewKidOnTheBlock wrote: »

but sure it can't be a coincidence... the day after the UK election the markets go up like crazy.

Jupiter European Opportunities investment trust

up 13.5p 2.53% yesterday

top 10 holdings

Novo-Nordisk A/S DKK0.2 B 8.96%
Provident Financial plc Ordinary 20 8/11p 8.25%
Wire Card AG NPV 8.10%
Reed Elsevier Nv EUR 0.06 (CDI) 7.00%
Syngenta Ag CHF0.10 6.31%
Novozymes AS Ser B DKK2 5.91%
Fresenius SE & Co KGaA NPV 5.35%
Leonteq AG CHF2 5.16%
Experian Plc Ordinary USD0.10 4.91%
Inmarsat Plc Euro.0005 4.81%

It's a coincidence, markets up elsewhere as well.

birminghamuniv

Investors don't like uncertainty. It does not mean that they like conservatives.