Sentiment mixed agead of G7/Yellen speech
|The major European stock indices turned lower in early trade this morning after a modestly firmer open. Traders were initially relaxed going into the open as US equities ended Friday little-moved. This was despite the US launching a missile attack on a Syrian airbase and after a surprisingly weak Non-Farm Payroll release. Over the weekend comments from Russia and Iran appeared to ratchet up tensions rather than calm them. Yet so far investors seem convinced that rising geopolitical tensions should have little negative effect on the global investment situation. In fact, the Japanese yen (which typically rallies on safe-haven demand when investor sentiment is unsettled) has fallen this morning. Not only that but precious metals, particularly silver, fell sharply on Friday evening and show no signs of recovering so far this morning.
As far as investors are concerned, nothing has changed to upset the ongoing bullish narrative. However, sentiment has a habit of changing rapidly and investors will be listening out for any unhelpful comments from today’s G7 meeting. Then later, US Federal Reserve Chair Janet Yellen is due to speak at the University of Michigan at 21:00 BST. Audience questions are expected.
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