Oil surges while investors wait for Fed and tech earnings

Chris Beauchamp IG

A fresh surge in oil prices reflects growing concerns about energy supplies, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.

Stocks struggle ahead of Fed and earnings

“The nervousness in markets is palpable. So much rides on the next 24 hours or so, thanks to the Fed meeting and the tech giants. Earnings growth has been the one thing keeping markets from completely losing it about the surge in oil prices, so it is up to the heavyweights tonight to deliver the goods in terms of earnings growth and a solid outlook. Meanwhile, Powell’s last meeting is unlikely to deliver any epic farewells from this most careful of Fed chairs, but it would be a surprise if the committee managed to restrain itself from commenting on the 20% surge in oil prices over the past week.”

Trump’s blockade plan reignites the oil rally

“Oil’s sojourn below $100 didn’t last long, and it was never going to while the Straits of Hormuz remain closed. Now, with the blockade expected to roll on for weeks the oil market is once again reflecting the growing panic around the globe. At some point equities might start to notice properly, but for now they are keeping their eyes firmly on US earnings growth."

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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