The rally continues.

14th October 2011

Ian Copelin, Investment Director, my wealth, comments, “Global equities have extended last week’s gains, with the FTSE-100 climbing another 3.07% over the week, while the S&P 500 is, as I write, up nearly 5%.

Markets have been helped by today’s US retail sales data (which topped forecasts) and optimism that euro-area policy makers will contain the region’s debt crisis.

Group of 20 finance officials and central bankers (who will meet to prepare for a gathering of leaders in Cannes, France on 3 November 2011) are discussing an expansion of the IMF’s role as part of a global G-20 agreement.  Earlier this week, Olli Rehn, the European Union’s Economic and Monetary Affairs Commissioner, said that the euro area is approaching a consensus on resolving the debt crisis.

Although some market commentators have pooh-poohed this rally, there does appear to be a different mindset emerging.  This may be the very reason that this time round, the market rally has lasted longer than previous ones – the first leg of any recovery in equity markets is an end to the selling and hopefully we have now reached this point.”