FTSE 100 enjoys a strong day

Chris Beauchamp IG

Threats to hit Iranian infrastructure have not resonated with markets as they once did, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.

FTSE 100 races to five-month high

It has been a stellar 48 hours for the FTSE 100, which has found its footing thanks to strength in oil, precious metals and dividend stocks. A rotation away from tech has resulted in a better day for European markets overall, which continue to defy the strength in oil. The focus now shifts to the US as the first of the hyperscalers, Alphabet, reports earnings, offering some relief from what appears to be a fast-deteriorating situation in the Middle East.

Precious metals rally for a second day

It has been a similarly strong two days for gold and silver, though both have a long way to go to recoup even half the losses of the past five months. Enthusiasm for the two metals may not have disappeared entirely, but it is a far cry from when they were headline news for many investors. Every rally has to start somewhere however, and a defence of $4000 is a decent place to start for gold.

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.

GBP/USD stays below 1.3400 after soft UK CPI data

GBP/USD struggles to gain traction and stays below 1.3400 in the second half of the day on Wednesday. The UK annual Consumer Price Index (CPI) inflation cooled to 2.6% in June against the market forecast of 2.7%, making it difficult for the British Pound gather recovery momentum. Meanwhile, investors keep a close eye on headlines coming out of the Middle East.

EUR/USD stabilizes near 1.1400 as markets focus on geopolitics

EUR/USD trades in a narrow channel at around 1.1400 on Wednesday. In the absence of high-impact data releases, escalating geopolitical tensions in the Middle East caps the pair's upside. On Thursday, the European Central Bank (ECB) will announce monetary policy decisions.

Gold holds gains above $4,100 undaunted by risk-off markets

Gold extends gains for the fourth consecutive day, standing comfortably above $4,100, unfazed by the risk-off market amid rising tensions in Iran and higher Oil prices. The pair has rallied nearly 2.5% so far this week and is on track for its best weekly performance in more than three months.

XRP consolidates as inflows and volume climb

Ripple (XRP) retains a slightly bullish outlook on Wednesday despite logging a minor correction from the supply range near $1.15. The remittance token is down 0.5% on the day, reflecting a broader cryptocurrency market drawdown, primarily driven by persistent geopolitical tensions between the United States (US) and Iran in the Middle East.

US – Fed preview: A divided hold

The first month after Kevin Warsh's debut at the FOMC's June meeting has brought mixed signals on the inflation front. On one hand, the re-escalation of the war in Iran has lifted energy prices higher again. Yet on the other hand, Warsh's hawkish comments have already lifted real rates, supported broad USD and tightened financial conditions while realized inflation surprised to the downside in June.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.