Hesitancy reigns in markets as a fresh trade spat between the US and Europe looms, while the clock ticks down to a key European Council meeting.
-
Equities little-changed so far
-
Trump turns his focus to Europe
-
Debenhams heads towards administration
A potential Brexit extension, a looming ECB meeting and an apparent ramping up of trade tensions between the US and Europe have all conspired to keep markets in check this morning. Small gains are in evidence in Europe, and in London the FTSE 100 is marginally in positive territory. The EU appears to be willing to grant the extension that the UK craves, but it needs to see evidence that Westminster has done its homework. Despite days of talks between the Conservatives and Labour, there has been little real progress, fuelling suspicion that both sides are merely playing for time, one commodity that is in short supply. Hopes were high last week that trade tensions between the US and China were being resolved, but now the president appears keen to reopen the battle with Europe even before the one with China is resolved. Such a development is not likely to be positive for risk assets, especially after such a strong run and ahead of a vital season for earnings.
The Sports Direct/Debenhams saga looks to be at an end, as the shares are suspended from trading pending a likely CVA. Ashley’s bid to control another chunk of the high street was always going to be a tough one, given the clash of cultures, and the loss of his stake will be a lesson in hubris for many traders and investors. As the UK concentrates on Brexit, the news is yet another reminder of the crisis facing many parts of the country outside London.
Ahead of the open, we expect the Dow to start at 26,301, down 40 points on Monday’s close.
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.
Recommended Content
Editors’ Picks
AUD/USD regained the smile…and the 200-day SMA
AUD/USD added to the positive start to the week and extended its bullish performance, surpassing the 0.6600 barrier and putting the critical 200-day SMA to the test.
EUR/USD remains well bid above 1.0900 ahead of US election results
EUR/USD built on Monday’s marginal gains and advanced further north of 1.0900 the figure on the back of the persistent selling bias in the US Dollar ahead of the FOMC event and the US election results.
Gold extends consolidative phase as US election result looms
Gold attracts dip-buyers after touching a one-week low on Tuesday but remains below $2,750. The benchmark 10-year US Treasury bond yield stays in positive territory above 4.3% as markets eye US election exit polls, limiting XAU/USD's upside.
Ethereum Price Forecast: ETH could rise 10% upon a Trump win, investors de-risk ahead of election results
Ethereum (ETH) is trading near $2,450 on Tuesday, but it could stage a 10% rise to test the $2,707 key resistance level if Donald Trump wins the US presidential election.
US election day – A traders’ guide
Election day volatility: Brace for potential wild market swings. Election days bring opportunities, but also risks. Unclear results can increase volatility further.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.