Afternoon Market Update – 26/01/2017 – by Jazz Singh

Stocks have extended their rally from yesterday’s session as a risk on sentiment persists among investors. This follows the long anticipated 20,000 level being reached on the Dow Jones at yesterday’s US cash open. The risk on mood is reflected in the dollar, which has gained some 0.5 percent against its major counterparts. Cable has seen the larger dollar move after a persistent rise over the past trading week. The pair has dropped some 100 pips this session. As mentioned, stocks are on the rise across the board; the Stoxx Europe 600 has gained 0.4 percent with US equity futures pointing to another gap higher at the cash open. Safe haven assets are on the decline so far, gold losing 0.7 percent in value after falling over 1 percent so far this week. The rally in stocks is being boosted by strength in the commodity complex with crude, copper and mining commodities all trending higher. We have some US data to look forward to this afternoon which could clarify any dollar moves.