More tough times for stocks but Meta keeps rising
It's another day of rising oil prices causing losses for equities, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.
Oil prices continue their rampage
While today hasn’t seen a wave of headlines about attacks on oil pipelines or tankers, it has seen another surge in oil prices. This continues to unnerve equity markets – when prices move for no obvious reason it is a sign that traders are pricing in different outcomes. In this case, it looks like an expectation of a further tightening of the supply situation, with the race back on to boost exposure to rising oil prices. Such momentum can become self-sustaining unless the US and Iran can make some progress, and soon.
Meta keeps on winning
Equity markets might be struggling but there are always winners to be found. Meta has been the standout trade of the past month and continuing to make headway. Markets retain their capacity to surprise, even over the AI trade, and the price action since August is a reminder that investors shouldn’t ever treat the Mag7, the hyperscalers, or whatever term is in fashion right now, as one single block.
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.
