The FTSE 100 could continue its rebound this week
The British stock market has started to rebound since Friday thanks to reassuring sales of new homes in the United States which are warding off fears of recession. Indeed, operators welcomed the unexpected increase (+11%) in the number of new home sales in the United States, while the consensus forecast an unchanged number.
This increase in home sales somewhat alleviates recent fears of a recession in the United States, even if it does not change the underlying trend, namely a drop in sales of new homes in the wake of the increase in mortgage rates. .
The particularly bullish reaction of the markets is not surprising and could continue due to the very pessimistic sentiment of market operators. Indeed, as indicated on several occasions, the various opinion polls indicated an extremely pessimistic feeling, which prompted us to adopt a contrarian (bullish) attitude.
Markets may also continue to rise this week as end-of-quarter and half-year portfolio rebalancing is expected to favor equities. However, the publications of US household consumption figures and inflation in the euro zone at the end of the week will be something to watch for the international stock markets.