Oil scales new multi-month highs
Rising oil prices and higher bond yields are piling on the pressure for equities, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.
Oil prices continue to rocket
It feels like investors worldwide are now waking up to the crisis in oil markets. A world of pain awaits the global economy if this surge isn’t stopped soon, but no one in Washington or Tehran seem keen to talk about peace. With Saudi Arabia’s production sharply lower too, the entire energy market faces a major readjustment, one that is unlikely to be ordered or painless.
Yield surge unnerves investors
Far from attempting to calm the moves in yields, it looks like policymakers in the US and elsewhere are keen to pour petrol on the fire. Faced with poll ratings that are heading southwards at a rapid pace, Trump’s lavish promises underscore how politicians refuse to engage with the scale of the problem. Meanwhile the ECB isn’t helping, expecting higher inflation for an extended period. Equity markets are desperately in need of good news, but it is in short supply right now.
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.
