London shares were modestly higher in early trading with the buying seen across July having carried over into the start of the month.
Some analysts in the City credited “solid” company earnings and a weaker US dollar, as a function of lowered expectations for interest rate hikes by the Federal Reserve, for the continued buying appetite – although there was underlying cautious.
On that note, Neil Wilson, chief market analyst at Markets.com, was telling clients: “Solid earnings, easing around inflation worries and some repricing around the Fed, plus a weaker dollar, has enabled a strong bear market rally.
“The S&P 500 can probably still hit 4,200, but I wouldn’t give it too much beyond that, even though the market could be happy to ride this bear market rally narrative for the summer. No one cares if it’s a technical recession or not.
“The market is way too complacent still because the Fed is not done yet.”
Jarvis Investment Management Ltd offers a wide range of stockbroking and administration services and solutions. Their parent company, Jarvis Securities plc (LON:JIM) is listed on AIM.