Tech stages a rebound

Chris Beauchamp IG

Tech stocks are looking to put a grim few weeks behind them, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.

Tech stocks try for another rally

Tech is once again mounting an attempt to rally, like a battered prize fighter getting up off the floor. In a world of solid earnings growth there is always going to be a temptation to buy the dip, and an absence of any action against Iran has given tech a chance to recover from last week’s drubbing. But rallying on a light day for news is a different kettle of fish compared to rallying on days when the calendar is full, so this bounce will be sorely tested in the days to come.

Oil prices steady after quiet weekend

That test may come sooner than thought. Oil started off the day down by a decent wedge, but it has recouped some of those losses. Rising oil prices are the kryptonite to any sustained rally in risk assets – were it not for Trump’s war in Iran, markets would likely be much higher from here. The hope for oil bears, and equity investors, is that the mid-terms mean the president can dump this particular bad idea, and move on.

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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