European equities are set to start with gains this morning as the weak economic data continues to roll in thick and fast around the globe. It looks like the logic of bad news is good is here again and the bulls are naturally sniffing some more loose central bank policy. All this recent chatter that has been seeping into the mainstream media about negative interest rates looks like it’s gotten traders thinking it’s a real possibility.
Stocks across Europe and U.S rallied on Wednesday following on from a strong session in Asia overnight. The rally also marked the last trading day for Q3 2015 which saw the biggest quarterly loss in four years. The Dow Jones rallied 234 during yesterday’s session to close as 16,284.
The Dollar ended the third quarter with strong gains against the Euro, marking the fourth quarter of gains for the currency in five. The Dollar rally was spurred on by strong private sector U.S jobs data.
Gold futures recorded their third loss in a row after a week which saw a strong rally for the precious metal. Gold December futures fell almost $11 to settle at $1115.20 per troy ounce, down 1%. These falls are after an announcement earlier in the week that the Swiss competition commission will be opening an investigation into possible price manipulation due to collusion from a number of big banks.
Contributed by Capital Spreads
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