Joshua Mahony MSTA
Scope Markets
With investors moving into risky assets, we have seen fresh highs for the likes of the DAX and Bitcoin. Meanwhile, with the negative prospects for Brexit negotiations continuing to knock confidence, a weak pound remains positive for FTSE valuations
- DAX and Bitcoin hit new highs
- Brexit deadlock drives sterling lower
- US banks kick off Q3 earnings season
Investors in both traditional and non-traditional markets have enjoyed the benefits of an improved risk appetite, with Bitcoin breaching $5000 and the DAX hitting 13,000 for the first time. Interestingly, despite improved attitudes to risk, we are also seeing gain for the likes of gold too.
The continued ascent of the FTSE has had much to do with the negative effect of the disjointed Brexit negotiations, with daily updates seemingly highlighting just how unsuccessful the initial rounds of talks have been. The current ‘deadlock’ shows little signs of being broken, with both sides unwilling to budge in their stance and combative positions. As time ticks on, the chance of a hard Brexit are heightened.
US third-quarter earnings season is underway today, with banks grabbing centre stage. Earnings data from JPMorgan and Citigroup saw profits rise once again, despite challenging bond trading conditions leading revenue lower for the quarter. Rising rates are no doubt going to be a big determining factor in profitability, with the retail section of the industry proving increasingly lucrative.
This material is a marketing communication and shall not in any case be construed as an investment advice, investment recommendation or presentation of an investment strategy. The marketing communication is prepared without taking into consideration the individual investors personal circumstances, investment experience or current financial situation. Any information contained therein in regards to past performance or future forecasts does not constitute a reliable indicator of future performance, as circumstances may change over time. Scope Markets shall not accept any responsibility for any losses of investors due to the use and the content of the abovementioned information. Please note that forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.
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