LONDON — Stocks and oil rebounded Monday on bargain-buying from last
week's blow-out, with traders riding a wave of optimism following pre-weekend
Wall Street gains.
اضافة اعلان
"Markets enter the new week with some renewed optimism, having ended
the previous week's tumultuous ride in positive fashion," noted
Interactive Investor analyst Richard Hunter.
"Although volatility is likely to persist given lighter summer volumes,
the weakness which the markets endured for the majority of the previous trading
sessions tempted some investors to buy on the dips."
The positive start was mirrored in
oil markets, with both main contracts
enjoying big gains, having suffered heavy losses recently owing to concerns
that the Delta variant would impact demand as countries restrict people's
movements.
Fears about the COVID mutation have rattled world markets as it forces some
governments to reimpose containment measures, while sentiment was jolted
further last week by minutes from the Fed's July meeting indicating it could
start withdrawing its vast financial support by year's end.
The colossal bond-buying program and record-low interest rates have been a
key pillar of the global recovery for more than a year, and the prospect of the
cash being withdrawn has stalled that advance.
However, Dallas Federal Reserve boss Bob Kaplan, who is considered a policy
hawk, suggested he could rethink his view to taper soon in light of the Delta
variant's global march, which is showing signs of hobbling economic growth.
Focus is now on Fed chief Jerome Powell's speech to the Jackson Hole annual
conference of central bankers and finance chiefs on Friday, with hopes for a
clue about a taper timetable.
"We're not sure if there will be any drama at the Jackson Hole Economic
Symposium but, if there is, Fed Chair Powell holds the key to it," said
market analyst Patrick O'Hare at Briefing.com.
Bitcoin back above
$50,000
Bitcoin topped $50,000 on Monday for the first time in three months after
supportive news from payments giant PayPal and
cryptocurrency platform
Coinbase.
The world's most popular virtual unit jumped to $50,440 during Asian trade,
before easing to $50,350 in early morning London deals.
"Bitcoin continues its recent recovery ... as PayPal announces plans to
launch its cryptocurrency trading platform in the UK," said AJ Bell
analyst Danni Hewson.
PayPal will this week begin to allow users in Britain to buy, hold, and sell
cryptocurrency through the online payment platform for the first time.
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