FTSE 100 drops back and Oil prices gain

Chris Beauchamp IG

The FTSE 100 has fallen back from a record high, while a rise in oil points to nervousness ahead of the weekend, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.

FTSE 100 slips from record high

End of month profit taking might be a bit of a cliché, but with a weekend of potential strikes on Iran and the last day of July trading upon us investors have looked to book in some gains. The FTSE 100 has come back into favour over the last two weeks, as AI and chip stocks continue to suffer, and while a close above 11,000 eludes the index at present, it still seems a matter of when, not if.

Tepid open on Wall Street

Yesterday’s surge for beaten-down tech stocks has cooled a little, and the aforementioned weekend will have some part in the blame for this, but the dip buyers will be looking to hold the line for today and then resume the buying on Monday. Assuming, that is, that the US doesn’t go in heavy on Iran in a fresh bid to secure negotiations. Reports point towards growing exasperation in the White House over the lack of progress towards a deal, which raises the likelihood of a significant strike in order to secure concessions. A recovery in oil today suggests there has been some opportunistic buying in case action does take place.

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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