Investors finally hear the jingling of sleigh bells

A pre-Christmas rally finally seems to be in progress, as shrinking volumes and an emptying calendar give stocks the space to move higher.

Stocks at last make headway

“A marginally more festive atmosphere prevails across stock markets this afternoon, with Christmas now very much within sight for most investors. This Santa rally has been long-expected, and eagerly-awaited, but kept being delayed by central banks, inflation data and other road bumps that have prevented any meaningful bounce developing for most of the month so far. Perhaps, with so little on the agenda before Christmas Day, markets finally have scope for a decent rally to round off such a difficult year.”

Oil prices push up following inventory data

“Oil has had a good day too, with the rebound from oversold levels gaining strength following the drop in inventory data. A year of two halves has seen oil rally and then drop back, and with no sign of any cut in output from OPEC and a recession still likely next year we could well see further drops in price. Consumers will welcome this at least, since it provides a much-needed respite from the surge in fuel prices that dominated the first half of 2022.”