The risk-off moves continue in stock markets, as investors await the Israeli response to Iran's attacks, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
Stocks remain deep in the red
“It has been another tough day for global markets, and limited gains in the US are disappearing as traders continue to derisk thanks to the ongoing uncertainty in the Middle East. The threat of an Israeli response to Iran’s attacks on Saturday, and yesterday’s strong US retail sales data, remain the drivers of the declines.”
Pullbacks happen
“Investors had become used to a steady drift higher in recent months, and had written off the indecision of March and April as a digestion of the gains before another leg higher. But ultimately, such pullbacks as we are seeing now are a common occurrence. We have moved swiftly from ‘greed’ to ‘fear’, but such drops give investors the chance to jump on board the rally at better levels than would be the case otherwise.”
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