Energy shares help Dow hang on to gains

US shares were up moderately heading into the final hour of trading on Wall Street, with the energy sector rallying on the back of rising oil prices.

Late in the New York trading session, the Dow was trading up 038% at 14,832, led higher by Chevron and Exxon Mobil. Worries over the situation in Syria have caused oil prices to surge and that in turn is propelling energy companies higher.

If the Dow finishes up today it will be the first time this week that the index has managed to finish in positive territory. Some of today’s bounce will be a reaction to the steepness with which the stock market has fallen over the past two days, as investors begin to spot value among the depressed stock prices.

A US attack on Syria has the potential to cause deep economic ramifications, but there will be market participants who view it as a transitory event as far as the stock market is concerned and therefore judge the automatic sell response as a buying opportunity.

We saw earlier today that the National Association of Realtors’ pending home sale index dropped 1.3% in July, which is not the first sign of softness in an area of the economy that is especially responsive to interest rates. After the big decline in durable goods orders seen at the beginning of the week, and now with worries over the Middle East battering the stock market and elevating energy prices, the arguments seem to be building that now is not a particularly appropriate time for the Fed to start reducing their monetary stimulus.

We have jobless claims data tomorrow, and another estimate of  second-quarter US GDP, which may shed further light on the subject.  

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.