Market Snapshot – Stock Markets Rebound as Risks Recede
Stock Markets Rebound
The stock markets had been under pressure over last week as there were reports that North Korea would be launching a missile on its National Day which fell on September 9. This made the investors and traders pretty jittery and they did not want to commit themselves in either direction ahead of such an event and that is why we saw the stock markets trading in a range with a bearish bias last week. But today, we woke up to reports that there were no tests carried out by North Korea over the weekend and this led to the recovery in the global stock markets starting right from Asia. Many of the stock markets opened with a gap while the gold prices opened with a downward gap. This recovery continued during the European session as well and the same is likely to carry on in the US session as well.
Pound Likely to be the Focus This Week
There was not much happening in the markets for today which is typical of a Monday with not much of news around. The star of the week could turn out to be the pound which has been trading in a strong manner since the middle of last week. There have not been many fundamentals supporting the latest leg of the bull run in the pound but irrespective of that, the pair has been moving higher and is now near the highs of its range. The market awaits the rate announcement and statement from the BOE later on in the week which will determine its short term direction.