If there are jitters about tech earnings this week then they’re not showing up in the price action, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.
FTSE 100 advances to new record
The FTSE 100’s directionless start to the day has given way to more record highs, joining the enthusiastic gains seen in Japan and the US in the past 24 hours. Bubble fears would be hard to engender here – even after its rampage to new highs the index still trades at 14 times earnings. Gold’s small bounce this afternoon should help prop up the mining sector, helping to put some shine back after the recent losses.
Bubble fears rise again as Microsoft and Apple join the $4 trillion club
This continues to be one of the most disliked rallies in history. Each new high in indices and every milestone achieved by individual stocks is presented as evidence of a bubble in equities. Even Cathie Wood appears to be getting jitters. This doesn’t feel like we are seeing Greenspan’s ‘irrational exuberance’, instead the disbelief appears to be widespread. It is understandable to see signs of nervousness around tech earnings this week, but the market continues to demonstrate remarkable resilience.
