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

Latest Forex Analysis

Editors’ Picks

EUR/USD drops below 1.11 amid upbeat US data, trade concerns

EUR/USD is trading below 1.11 after robust US housing figures and solid consumer sentiment figures were published. Earlier, the common currency suffered from the concerns of new US tariffs on the EU.

EUR/USD News

GBP/USD down 100 pips after UK retail sales badly disappoint, amid USD strength

GBP/USD has plunged below 1.3050 after UK retail sales badly disappointed with a fall of 0.6% in December, on top of downward revisions. Odds of a BOE cut have risen.

GBP/USD News

Crypto market hyperspace mode On

The secondary actors of the crypto-sphere awaken and rally hard. Leading coins battle with greater resistance at the gates of a full bullish market. The only risk is an over-shoot, but that sentiment remains neutral.

Read more

Gold: Sustained move beyond 200-hour SMA sets the stage for further gains

Gold edged higher through the mid-European session on Friday and is currently placed near the top end of its weekly trading range, around the $1560 region.

Gold News

USD/JPY: Losing bullish momentum but retaining gains

Chinese encouraging data kept markets in risk-on mode at the beginning of the day. The US January Michigan Consumer Sentiment Index is seen at 99.3, matching December figure. USD/JPY holding at the upper end of its weekly range could correct lower.

USD/JPY News

Forex Majors

Cryptocurrencies

Signatures