Oil price rise weighs on stocks

Chris Beauchamp IG

Rising oil prices and higher yields have thrown the equity rally off track, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.

Stocks fall as worries return

After the risk-on start to the week renewed gains for oil prices and yields have weighed on indices. An absence of positive peace talk news has provided the foundation for rising oil prices, which seem to have halted their falls after a week of losses. So much of what happens in stock markets is now dependent entirely on oil prices, and a failure to agree any reopening of Hormuz revives the morbid fear that the world faces a major energy crisis.

Dollar hits fresh seven-week high

Equities might be struggling but the dollar continues to rally, thanks to continued expectations that the Fed will have to hike again before year-end, and possibly as early as October. This has dealt a severe blow to hopes that gold can recover, and outside of energy prices it remains a grim day for commodities.

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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