FTSE 100 scales new heights & Oil surges
|It has been another stellar session for the FTSE 100, while oil prices are leaping higher on geopolitical tensions, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.
FTSE 100’s record run continues and tech rebounds
Weaker UK inflation and strong results from star performers in the defence and mining sector have propelled the FTSE 100 to yet more new highs. It is a firm risk-on day for global markets anyway, which seem to be unfazed by the continued military buildup in the Middle East. Yesterday’s sharp reversal in the VIX has heralded a revival of bullish momentum across the board, but it looks like the inevitable dip buying in tech stocks has finally begun.
Oil and precious metals surge
The curious feature of today’s action is how oil, gold and silver appear to be reacting to the ongoing deployment of US forces alongside the rally in stocks. Reports pointing to major military action naturally raise the risk of some kind of closure of the Hormuz straits, and while an oil rally has been an off again/on again move for some weeks, sustained action in the region is likely to precipitate a significant move higher in prices.
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