Stocks remain remarkably calm despite the ongoing closure of Hormuz, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.
Stocks recover from Iran shock
Even the smallest dip continues to be an opportunity for buying it seems. What does it matter if the Straits of Hormuz remains closed, so long as the US and Iran are poised to begin talks again? Despite the gap down on the start of trading last night, equity markets continue to look towards a resolution of the conflict. This comes despite a surge in oil prices and a rise in the Vix that show market worries about the medium-term outlook refuse to go away.
UK poised for a rough week on economic data
UK unemployment is expected to rise tomorrow, and Wednesday’s inflation data is essentially a foregone conclusion. This reinforces the challenge for the Bank of England, which has to fight the urge to raise rates as the economy weathers the storm of higher prices. While the Westminster drama around Peter Mandelson might seem distant from the crisis looming over UK plc, political uncertainty could well make Threadneedle Street’s job even harder.
Source: https://www.fxstreet.com/news/equities-shrug-off-weekend-shock-202604201553