Talking Points
- Investor confidence remains high and metals prices are pointing to a strong global economy.
- However, sentiment indicators suggest that the US Dollar could weaken.
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Investor sentiment indicators, like the Sentix index released Monday and the better-known ZEW, can be important for market pricing but should be treated with caution as they may just reflect optimism caused by the current strength of stock markets and therefore be backward rather than forward looking.
At present, they suggest that confidence is high, and the present upswing in the prices of copper and iron ore and not just lifting mining stocks but are pointing to a buoyant global economy.
However, IG Client Sentiment data are flashing amber for the US Dollar, as is the Bank of America Merrill Lynch Bull & Bear index, which is in extreme bullish territory and therefore suggesting a “meaningful” market correction.
You can find out more by listening to this recording of the live webinar hosted earlier today.
--- Written by Martin Essex, Analyst and Editor
To contact Martin, email him at martin.essex@ig.com
Follow Martin on Twitter @MartinSEssex
You can also learn more by listening to our regular trading webinars; here’s a list of what’s coming up
