FTSE underperforms as Brexit worries resurface
|Brexit fears come back into play amid a fresh round of talks scheduled for next week. Meanwhile, a welcome decline in jobless claims fails to spark the S&P 500 into fresh highs for now.
- FTSE underperforms on Brexit and furlough worries
- Initial jobless claims drop below 1 million
- Brexit fears likely to drive FTSE and GBP underperformance
UK listed stocks are underperforming today, as traders look ahead to a double whammy of resurgent Brexit fears and an October end to the furlough scheme. With stocks coming off a strong run, today provides a breather despite an impressive jobless claims report out of the US. With initial jobless claims dropping below one-million for the first time since March, there is a feeling we are finally moving into a more normalised state of affairs despite the absence of a fresh stimulus bill. With both sides seemingly at a stalemate over the next stimulus package, it does provide a potential future boost for bulls to look ahead to. While the S&P 500 has retreated just below all-time highs, there is a feeling it is a case of when, not if, we see that breakout take place.
Brexit talks look set to resume once again next week, with the continued stalemate expected to bring further anxiety of UK traders despite an optimistic tone from negotiators. The UK chief negotiator David Frost signalled the potential for an agreement by September, although the prospect of an all-encompassing deal in such a short space of time seems optimistic at best. While the pound has been gaining ground against the dollar over recent months, there is a distinct possibility that we will see these Brexit fears dictate price action in the absence of a deal.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.