Oliver Mangan: Optimism that central banks are moving to a less hawkish stance
The mood in markets has improved recently, with the decline in inflation in the US and weak economic data in Europe resulting in a scaling back of rate hike expectations, helping risk appetite.
Economic data has been giving some conflicting signals recently. Both headline and core inflation rates are easing in the US, while at the same time, they are hitting new highs in Europe, with the summer spike in gas prices there now feeding through into much higher electricity prices.
The US continues to print some strong data, most notably on jobs growth and consumer spending. GDP growth could accelerate in this quarter from the 2.6% annualised rate recorded in the last quarter.
