FTSE 100 pushes higher but Oil surges

Chris Beauchamp IG

A rally for sectors other than tech suggests a market rotation is underway, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.

Market rotation gathers pace

Last week’s turn in markets appears to have some life in it. Like Friday’s session, today has seen non-tech stocks take the lead while the previously hot sector falls behind. After weeks of concern about deteriorating market breadth that looks eerily similar to 2001, stock markets appear to be in a healing process that is ultimately healthy for the longer-term outlook. That this has been seen in Europe even as oil prices is also perhaps a further sign of a revival.

Oil strides higher

Relief from rising oil prices is only temporary these days. Trump’s deal with Putin was only ever going to be a modest sticking plaster. More attacks on tankers and an escalating war in Saudi Arabia spells major trouble for economies and markets. With Brent crude futures at five-month highs the pain continues to be felt by consumers, but with his party trailing so badly in the polls there seems no incentive for the US president to try and make a deal with Iran.

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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