Equities trim losses and Bitcoin rebounds
|Traders are taking a more measured view of the geopolitical situation this afternoon, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.
Losses stabilise across equity markets
Perhaps the surprise about today has been the relatively muted reaction across equity markets. Oil prices reacted in suitably dramatic fashion, but today has seen US indices emerge as something of a safe haven. Given their poor performance versus other markets so far this year, this perhaps isn’t a surprise, and today’s reaction certainly falls into the category of ‘sell the rumour, buy the fact’. It is early days of course, but stocks seem able to live with the war in the Middle East so long as it doesn’t escalate.
Bitcoin finds its footing
Today’s other move of note was bitcoin, which surged over 5% in the afternoon session. While the price hasn’t rallied of late, it has avoided any major breakdown below $60,000, something that is likely to tempt flows back on hopes that a recovery is at hand. Silver’s sharp reversal and a struggle for gold after initial gains should add to bitcoin’s appeal on a relative basis.
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