Middle East deal sparks global market rally
It is rally time in markets thanks to the US-Iran deal, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.
Rally goes global on deal news
The US-Iran deal was going to be the only game in town for markets today after the US president announced it last night. Markets have been dancing to Trump’s tune ever since he was re-elected, and especially since his tariff announcements of last year. This has only intensified with the Iran war, but once again it looks like he may succeed in skirting a global meltdown, but only just. The news has been the signal for rampant buying, unleashing billions in equity purchases that have been waiting for this moment.
FTSE 100 left behind
A rally for mining stocks has made a powerful contribution to the FTSE 100 today but the joy of weighting means that losses for BP and Shell on oil’s fall, plus AstraZeneca’s continued struggles, have kept the index in the red while everything else heads higher. But the future looks brighter – while tech stocks lead the way, some rotation out of the expensive sector is likely, and the FTSE 100’s relative cheapness will help the index play catch-up.
Author
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.
