The prospect of a deal on Hormuz has lifted equities, while SpaceX shares are higher ahead of its results debut, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.
Peace deal hopes bolster risk appetite
Stocks continue to gain on hopes that some kind of deal on Hormuz will be announced soon. Given how often this has been declared, you might think that everyone was tiring of the pantomime, but with the Dow, Dax and others at record highs and recent laggards like the Dax and Nikkei rebounding too it appears that Trump is managing to avoid a major crisis in the global economy. Oil prices are down too, which is always good for generating upside in equities panicked by signs that inflation is picking up again.
SpaceX looms large
Tonight’s big news will be the inaugural outing for SpaceX results as a listed company. The euphoria of $200 a share has been replaced with plentiful negativity down at $108. This feels like a binary moment for the stock – good results could reignite the mania we saw around the IPO, but a miss tonight would spark a new rout that could take it below three figures. With another lockup expiring two days from now the selling might turn into a torrent.
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