Why are stock markets rising?

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3 things investors should be watching, as stock markets climb a wall of worry.

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

24 July 2023

A common saying in the world of investment is that stock markets often climb a wall of worry. This means the market can continue to rise, even against a backdrop of negative news and uncertainty in the economy.

It's because the market is a forward-looking mechanism. It looks through today's negative headlines to the longer-term outlook for the economy.

With earnings season in full swing, markets enjoyed a strong showing last week. The FTSE 100 cemented its best week in months as global markets continued to edge higher, ignoring worries over the large tech players.

Past performance isn't a guide to the future. Source: Lipper IM to 30/06/2023.

This week, markets have got off to a more muted start, with expectations for a choppy week as investors prepare to digest a slew of results from the UK's biggest