Equities gain but oil prices slump further

Chris Beauchamp IG

A drift higher continues across stock markets as investors await the US inflation reading tomorrow, though oil prices have dived again, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

Stock markets higher as countdown to CPI begins

“US and European indices have clawed their way higher for another day, though the FTSE 100 has endured a much more muted session. Notably tech stocks have avoided too much of a dramatic reaction to news of a possible anti-trust move on Alphabet, even if the search engine titan itself is down over 1%. The clock is ticking down to tomorrow’s US inflation reading; a higher reading tomorrow would give the chances of a hold next month quite a boost, lifting the dollar too.”

Oil prices slump for a second day

“Oil bulls have been unable to drive the price higher over the past 48 hours, bereft of news from the Middle East and now beset by a hefty rise in inventory levels. A substantial Israeli response is still likely, but if it stops short of oil and nuclear installations then we can expect further selling in Brent and WTI.”

Author

Chris Beauchamp

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