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.

GBP/USD extends the drop to 1.3360

GBP/USD builds on Monday’s decline and briefly clinches five-day lows near 1.3360 on Tuesday. Cable’s extra pullback follows the better tone in the Greenback as uncertainty in the Middle East prompts investors to adopt a cautious stance. Meanwhile, an apathetic UK labour market report also collaborates with the selling pressure on the British Pound.

EUR/USD stays offered just above 1.1400

EUR/USD keeps the downtrend well in place for yet another day, challenging the 1.1400 contention zone on Tuesday. The continuation of the selling impulse in spot comes amid decent gains in the US Dollar, which continues to find support in the persistent effervescence surrounding the US-Iran crisis.

Middle East crisis intensifies, Gold up

Gold now seems to have embarked on a consolidative phase below the key $4,100 mark per troy ounce in the latter part of Tuesday’s session. Meanwhile, uncertainty surrounding the Middle East conflict and rising expectations for a hawkish Fed policy outlook are expected to limit the precious metal’s bullish momentum in the near term.

XRP extends recovery as on-chain activity grows

Ripple (XRP) ticks up and trades around $1.13 at the time of writing on Tuesday. This rebound aligns with a broader recovery in the cryptocurrency market, attributed to reports that mediators between the United States (US) and Iran are seeking a 10-day cessation of strikes to find a way back to the signed Memorandum of Understanding (MoU).

The Iranian war has again risen

The Iranian war has again risen to the top of the economics factor list. There is no end in sight. Intelligence experts say the current level of offense/retaliation will not change minds in Tehran, while in Washington, Trump fears all-out war, which would mean boots on the ground.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.