- Increased tensions push stock markets lower
- Travel stocks hit on geopolitical concerns
- US GDP revised higher
Turkey’s downing of a Russian fighter has raised the spectre of further global tensions in an already inflamed trouble spot. While both nations retire to work out their next move – which in Turkey’s case involves calling an extraordinary meeting of NATO – investors are left wondering what the ramifications will be. We have seen oil prices spike again today as markets factor in a greater level of disruption to supplies, while major airline and travel names are under pressure once more. After a shaky start to the week, stock markets are coming under pressure yet again, and while a Thanksgiving rally is still a possibility, at present broader geopolitical concerns seem to be trumping confidence in US consumer spending. Luxury firms have been the target of selling of late, and Burberry is the latest victim, helped along by negative commentary from a number of banks. Slowing Chinese tourism and spending continues to be a major driver, leaving the share price at risk of further falls.
US growth was revised upwards for the third quarter, although the news was not entirely unexpected. For those convinced that a December rate increase is on its way, the data merely acts as confirmation, while those that think the Fed will hold fire can point to weaker consumer spending. Disappointing US consumer confidence figures will add weight to the latter thesis, but overall the decision still looks like a close call. For now however, equities remain out of favour.
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
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800, as traders lack directional impetus amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold ends Q1 2024 at record highs, what’s next?
Gold is sitting at an all-time high of $2,236, lacking a trading impetus amid holiday-thinned conditions on Good Friday. Most major world markets, including the United States are closed in observance of Holy Friday, leaving volatility around Gold price highly subdued.
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple price has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days.
US core PCE inflation set to ease in February on month as Federal Reserve rate cut bets for June mount
The core Personal Consumption Expenditures Price Index is set to rise 0.3% MoM and 2.8% YoY in February. The revised Summary of Projections showed that policymakers upwardly revised end-2024 core PCE forecast to 2.6% from 2.4%.