Drop in Oil prices eases the pressure for now

Chris Beauchamp IG

Falling oil prices have helped stocks to recover slightly, but the gloomy mood is likely to return next week, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.

Oil weakness supports stocks

Having advanced all week, oil prices finally ran into some profit taking today, though further strikes at the weekend are still expected. This is likely to be a temporary respite for stocks generally, since the US and Iran are no closer to beginning any kind of ceasefire talk. Instead, the pressure on equities is likely to resume next week.

Action-packed week of earnings to keep investors busy

While the corporate calendar is full to the brim next week, it is not likely to provide much relief for stocks. This week’s Alphabet numbers were a sign that investors are still very skittish about the vast spending plans of the hyperscalers, and with this earnings season taking place against a backdrop of military strikes, the inclination remains to keep derisking as the summer goes on.

Author

Chris Beauchamp

Chris Beauchamp has been with IG for four years, and in that time has become a regular commentator and analyst for the financial press and TV, with appearances on all the major financial channels as well as the BBC and Sky News.

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