US budget talks go on, target sounds a warning on spending
|Investors are watching the budget talks in Washington closely, while there are more signs that consumers are reining in their spending says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
Stocks struggle thanks to debt and spending worries
It’s too early to say that the rally from April’s lows has run its course, but the going continues to get tougher for stocks. The US budget continues to dominate newsflow, but it takes place in a market atmosphere that’s now much less forgiving of Washington’s propensity to spend, spend, spend without regard for the consequences. To add to that, the economy that supports the whole tottering edifice continues to give cause for concern; Target has reduced its annual forecast as spending comes under pressure. Stocks have shown a remarkable ability to recover from bad news, but investors cannot take it for granted right now.
Oil prices trim gains
Brent and WTI have eased back from their overnight highs but worries about an Israeli strike on Iran could easily send them flying once again. Without a comprehensive deal to restrain Tehran’s nuclear programme, Tel Aviv may feel it has run out of road and needs to act now. Such a move would prompt a much bigger move higher in oil than that seen yesterday.
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.