Value stocks come into prominence as markets rise

Stocks have continued their rise despite a poor ADP figure. Meanwhile, precious metals and crude gains round up another good day for commodities.   

• Value stocks outperform as sentiment lifts 
• Weak ADP figure offset by Trump’s promise of a strong NFP jobs release 
• Crude hits five-month high as stockpiles tumble 

Traders have grown in confidence today, as market gains drive the S&P 500 to within just 2% of record highs. The surge in value stocks seen today is highlighted by outperformance for small-caps on the Russell 2000 and Aim market. That desire for value has been highlighted by the strength we continue to see for airlines such as IAG, Ryanair, and easyJet. However, there is a distinct difference between US and European airlines, with the prospect of further lockdowns restricting travel and tourism gains on the other side of the Atlantic.  

On the economic front, there are fears for Friday's jobs report, after a disappointing ADP jobs number today. With jobless claims on the rise and ADP payrolls around one million jobs below expectations, there are doubts around Trumps promise of a big jobs number on Friday. Those economic worries do continue to feed precious metal gains, with gold hitting record highs on a daily basis this week. 

Reprinted from fxstreet , the copyrights all reserved by the original author.