Tech recovery goes on and Gold moves higher

Bargain hunters continue to pile into tech stocks, while gold is enjoying a better day too, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.

FTSE 100 loses out thanks to HSBC

While the FTSE 100 would still be lower today without HSBC’s nasty fall, it is of little consolation when the index has missed out on what has been a much more positive day for global markets. The tech recovery is entering a second day, but losses for oil have meant that most of the rest of the losses are thanks to BP and Shell. Nonetheless, with most other major indices heading higher there remains hope that this is a more durable rally than those we saw last week, with the caveat that there is still an abundance of macro risk to navigate this week.

Gold rebounds from $4000

Everything has to bottom somewhere, and for gold it appears that $4000 was at least short-term support. The brief loss of this key level last week captured headlines, but flows have been strengthening in Q3 even with the reversal of the August bounce. Much now hinges on the Fed’s commentary around tomorrow’s decision, but we have a line in the sand for the time being.