Market Musings 140724: Global stocks advance broadly
Summary
Nasdaq 100 advances but stuttersNew multi-year highs in Japan Nikkei 225, Korean KOSPI, Indian SENSEX indicesUS inflation lower than expected, raising US rate cut expectationsGold hits a new weekly high, threatens to break higher; gold miners rallyUK mid caps (FTSE 250) continue to rebound post-election, sterling rallies too v USD, EUREuro leaves behind French election uncertainty, back above $1.09Political uncertainty seems to have little impact on stock market optimism
Very strong Japanese, Taiwan performance
Nasdaq tech large-caps still advance after a stutter
UK, Europe mid-/small-caps perform strongly
Biotech sector picks up momentum after lagging since 2021
Gold Miners break out of very long-term downtrend, more to come?
Conclusions
Political uncertainty has triggered little stock market volatilityLower US inflation raises US rate cut expectations (in September), driving US bond yields lower, US dollar lower v Euro, SterlingUK stocks, sterling catch a bid post election; remain undervalued v global counterpartsGold and silver miners should rise further on back of...