Wave of selling resumes across stocks

Chris Beauchamp IG

The sea of red is getting deeper by the day, as the reversal that started so dramatically yesterday picks up the pace.

Selling enters high gear

“The bounce of the first half of the week is a distant memory. Growth worries are back to the fore and investors are back to selling every bounce as they fret about a recession in the US and elsewhere. The broad nature of the slowdown was confirmed by Target’s numbers, while Cisco’s slashing of forecasts last night and Standard Chartered’s cut to its China GDP forecast overnight confirms the gloomy outlook. The end of earnings season might provide some brief respite from all the negativity, but with more high inflation readings and interest rate hikes to come stocks are going to suffer a lot more bad news.”

Gold finally rallies

“Gold bugs will have been waiting for their moment, and after watching impotently yesterday as the price failed to move, they will be pleased to see the metal has finally woken up. Some overdue USD weakness is going to help, and as everyone worries about a US recession and high inflation, gold might finally have a chance at recouping some of the losses seen since 1 April.”

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Chris Beauchamp

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