Heading into the close, the FTSE 100 is eight points lower, but a rebound in oil is helping to put a positive spin on the day.
- Saudi/Qatar spat moves to a new level
- Stocks still becalmed
- Gold on the up as week draws to a close
A resurgence in oil prices, which are doing their best to finish a tough week on a high, has helped restore some confidence as Friday’s session winds down in London. Some of the bounce in crude is likely down to worries that tensions in the Gulf are about to rise once more, as Saudi Arabia and co issue a set of demands to Qatar. The list of requirements is so comprehensive as to reduce Doha to a virtual satellite of Saudi Arabia, bringing the state back in line with its near neighbours. If the demands push Qatar further into Iran’s arms, Riyadh may find itself with an ever-growing problem. Stocks have managed to lift themselves off the lows, but the overall tone of the week has been mildly
negative. With little on the agenda for the next few days too, it looks like the summer malaise has further to run.
Gold still looks to be the one to watch next week, helped on its way by a weaker US dollar and rising geopolitical tensions. Should we see fresh news from the Gulf next week, then the highs of early June could be rapidly recovered.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.