Heading into the close, the FTSE 100 is down 120 points, while US markets dive firmly into the red.

  • Trade war patience finally snaps
  • No clear end-game in sight
  • WeWork picks its moment to launch IPO 

The market it seems has finally lost patience with the president. Yesterday’s rally is but a memory, as indices across the US and Europe go deep into the red. What had seemed so promising 24 hours ago has been ‘trumped’ by the yield curve inversion and poor economic data from Germany and China. Investors continue to pull money from equity funds, with the move exacerbated by the selling on inversion headlines. Hopes of a US-China deal appear to have faded entirely, which may require some additional re-rating on equities, especially since the conflict appears to be feeding into economic data in a substantial way. Europe is leading the way down, but US equities are no longer immune it seems.
 Perhaps the big worry is that there seems to be no over-arching plan behind the president’s actions – if there was a plan, with a definable end-game, then investors might be prepared to be patient, but the Trump administration’s ad-hoc approach suggests the chaos will continue, and points towards an absence of global coordination to any sustained downturn, since the US is busily burning its bridges with key trading partners. 

WeWork’s plan to go public has been met with amazement, and is potentially the moment when the mantra of revenue growth over actual profit is tested to destruction. The timing of the news, on a day when Uber touches a post-IPO low, could not be better, but even a much more conservative valuation would still seem to underestimate the scale of the hole that the office company is digging. The move to list appears to be driven by concerns that stock markets will suffer in 2020, but if they do, such expensively-priced firms as WeWork and Uber will not be immune.

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.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD falls below 1.1850 as US consumer sentiment beats

EUR/USD is trading under1.1850, off the previous levels as US consumer sentiment beat estimates with 78.9 points. The Fed refrained from adding more stimulus, supporting the dollar earlier in the week. Investors are eyeing fiscal stimulus talks.


GBP/USD falls as the EU reportedly objects Johnson's bill

GBP/USD is trading around 1.2950, off the highs. According to reports, the EU remains opposed to UK PM Johnson's controversial bill, which violates the Brexit accord. 


XAU/USD struggles to move back above 100-hour SMA

Gold regained some positive traction on the last trading day of the week and recovered a part of the previous day's losses to over one-week lows. The commodity held on to its intraday gains and traded above the $1950 level through the mid-European session.

Gold News

Ethereum hits Bitcoin's bid to lead the market

Bitcoin risks dominance after the strong rise of Ethereum. Technical indicators show some significant discrepancies keeping the stress on the board. Sentiment levels are improving and bordering on optimism.

Read more

After yesterday's JMMC meeting WTI settles near $40 per barrel

WTI has been through a rollercoaster this week. The liquid gold has been in a downtrend leading into the OPEC+ JMMC meeting and then reversed the whole move. At the meeting the group agreed to extend the compensation period for overproduction till the end of December. 

Oil News

Forex Majors