It’s Friday…the 13th! Unlucky for some though fortunately it is the only one this year. Do stock markets care about an enduring superstition? We think it’s pretty safe to say they do not. Equity markets everywhere are enjoying summer life at the moment with the MSCI global gauge of stocks hitting a new record high. US stocks also closed up at fresh all-time peaks for the third straight day, though the Nasdaq is a fraction away from getting the bunting out.

Trading volume has slumped and with the bumper second quarter earnings season now winding down, stock markets are continuing north. This side of the pond is also not missing with European stocks equalling their longest winning streak since 2017 with the Eurostoxx index extending gains for a ninth consecutive session.

The FTSE100 is lagging the other indices but a strong weekly close would be very positive. Mid-June highs at 7217 are the near-term target, before buyers set their sights on the pre-pandemic February mark above 7400.

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Dollar holding near the highs

After failing to break to new technical highs earlier in the week versus the euro and pound, the greenback is quietly consolidating. DXY printed an inside day yesterday which signals a drop off in volatility but this is generally considered a continuation pattern.

Markets got more consensus-beating inflation data yesterday in the form of the producer prices index (PPI). This posted its largest annual increase in more than a decade as strong demand fuelled by the recovery continues to hurt supply chains. The weekly jobless claims figures also fell again last week supporting the dollar bid. Sentiment and positioning has shifted towards king dollar recently as the Fed talks taper and we should get more colour on this next week with the FOMC minutes.

In the meantime, bullish consolidation on the DXY means we may see higher prices. Bulls have the mid-July highs at 93.19 firmly in their sights. They will then look to ascend the year-to-date top at 93.43.

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