Equities rebound and Amazon hits new highs

Chris Beauchamp IG

Stocks have been given fresh impetus by the US decision to hold off on Iran strikes, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.

Stocks rally despite Iran uncertainty

While the world confronts yet another classic Trump Groundhog Day on Iran, markets have opted to take the chance to rally while it lasts on the opening day of August trading. For the moment this has the feel of a general rebound about it, with most indices advancing broadly, with no sign of any ‘unrotation’ of the recent rotation out of tech. The FTSE 100’s quest to 11,000 is still on pause however thanks mostly to AstraZeneca, though the picture beneath the surface is much more encouraging.

Tech enjoys a surge though Apple crumbles

Having been the tech safe haven over the last month Apple now finds itself in the grip of post-earnings selling, while the intra-tech rotation vaults Amazon to a new record high. Were it not for Apple spoiling the picture it would look as if the Magnificent 7 are roaring back into life, though in some cases there is an awful lot of lost ground to make up, and no guarantee that this rally can stick in the choppy conditions of August trading.

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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