Tech rout goes on and Bitcoin suffers more losses
Another day of selling in tech names continues to put strains on global markets, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.
Chip selloff continues but remains contained
Investors continue to dump AI and chip stocks at a prodigious rate. The euphoria of May and June is long gone, but the selloff is still mostly limited to these tech sectors. Oil’s ongoing slump provides a cushion for a broad swathe of other sectors, but it is unlikely that these can remain immune for long. Rising CDS prices for tech heavyweights are a sign that this has the potential to turn into something quite nasty, and then in that eventuality few stocks will be able to remain immune.
Bitcoin declines for a second day
Bitcoin continues to teeter on the edge of bigger declines, and having bullish momentum dry up over the past month and broader sentiment weakening by the day, the case for yet another big drop similar to early June becomes stronger. Global markets are gearing up for a maniacally-busy period from tomorrow onwards. The ingredients for a broad selloff across asset classes are in place, only the trigger is missing.
Author
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.
