Equities slump on war concerns

Chris Beauchamp IG

The recent strong run for European equities has been dealt a blow, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.

European stocks hard hit on war fears

The looming resumption of war between the US and Iran, or at least a fresh blockade of the latter, has driven a wave of selling in European markets that are heavily exposed to higher energy costs. The Dax has reversed all its gains from last week, while the FTSE 100’s push towards 11,000 has once again been rudely interrupted. On Wall Street the Dow Jones has suffered heavily as potential higher energy costs are factored in, but there has been some buying of tech stocks, which had already sold off heavily. Should Trump reverse his hawkish rhetoric, we might be in for a repeat of the April rally that saw tech lead the way.

Apple and Broadcom help bolster sentiment

On a day without war news the Apple/Broadcom update would likely command all the attention, but it is certainly doing its part to help the dip buying in tech indices. Broadcom’s summer rally had come off the boil but a wider partnership with Apple is just the ticket to revive the flagging share price.

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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