Stocks rise, defying gains in Oil

Chris Beauchamp IG

A rise in oil prices has not provoked the usual selling in equities, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.

Stocks up, but oil higher too

Traders have been treated to an odd sight today as oil prices rise in tandem with equities and precious metals. Usually the former rises at the expense of the latter two, but then this week was always going to be a tug-of-war between earnings season and the news from the Middle East. While both sides continue to work their way through their weapons stockpiles, it seems like neither want to start climbing the escalation ladder. Gold continues to hold $4000, though with the dollar on its way up again this state of affairs may not last.

UK borrowing costs edge higher

Andy Burnham may be only 24 hours or so into the job, but hopes of a breathing space are disappearing rapidly. The rise in borrowing costs, partly off the back of today’s figures, are a reminder that there is little room to splash the cash without some pretty serious reforms to existing spending commitments. And already the foes are increasing in number following the Cabinet changes yesterday. This isn’t going to be easy, but he probably knew that anyway.

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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