There’s some very weird stuff happening on global financial markets.
In the “buy everything” trend, we’ve again seen US shares push modestly higher at the same time as safe haven gold rocketed to a fresh record high.
Analysts have largely attributed the stock gains to some key positive corporate earnings results from Morgan Stanley and Bank of America in the US and France’s LVMH, which sparked a rally in the luxury goods sector.
MSCI’s gauge of stocks across the globe rose 7 points, or 0.75%, to 986.
On Wall Street, stronger early session gains reversed as investors worried about the renewed increase in trade tensions with China.
The Dow Jones Industrial Average ended very marginally lower, the S&P 500 rose 0.40%, and the Nasdaq climbed 0.7%.
At the same time, spot gold punched a fresh record of $US4,217.95 an ounce.
“There’s fear out there and we really don’t know how tariffs and the slower employment is going to affect consumer spending and company financials going forward,” Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia, told Reuters.
“I hope they get together and find a solution that is amenable to both parties, because this escalation isn’t good for markets. It’s probably not good for either economy.”
Exactly. So why on earth are stocks continuing to push towards fresh records?
It seems like a pretty big bet on TACO (Trump Always Chickens Out).
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We’ll wait to see if investors end up with indigestion.
