New-month optimism has faded quickly on global equity markets, as a slew of concerns hobbled the morning’s positive start, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
Early gains fizzle out across markets
“May ended with a bang as equities in the US surged into the close on Friday. The morning session for Europe and US futures suggested we might see more gains, but aside from small gains for the Nasdaq 100 Wall Street has failed to make progress, while European markets have given back some of their gains. A contraction in US manufacturing activity and signs of strength in European gas prices have given investors reason to put their bullishness on hold.”
Oil prices slump despite OPEC news
“At least consumers will be seeing lower petrol prices at the pumps soon. Oil prices have slumped to their lowest level since early February. Friday’s optimism around an OPEC+ meeting has evaporated. The news has put some pressure on BP and Shell in London, though their losses are dwarfed by the slump in GSK’s share price as it faces fresh legal battles.”
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