Share:

Markets continue to fall, as markets react to weak Chinese data and continued fears over the US-China trade war. Meanwhile, yesterday’s attack on the Strait of Hormuz rumbles on as the US and Iran trade barbs.

  • Stocks ease lower, as US-Iran trade barbs after yesterday’s attack

  • Sterling declines at prospect of Johnson leading us into final negotiations

  • Chinese data highlights continued slowdown, with eyes turning to G20 meeting

Stocks are in the red once more today, as the wider risk-off move continues to maintain prominence amid a war of words between the US and Iran in the wake of yesterday’s attack in the Strait of Hormuz. The shift into markets with perceived haven status has seen a sharp increase in the price of gold, with the outperformance of Fresnillo on the FTSE 100 highlighting that desire for safety. Meanwhile, markets are growing increasingly fearful over the direction of travel for Brexit, with the prospect of Boris Johnson leading us into the critical phase of negotiations driving sterling back into the lows of the week.

Despite the head-turning events in the Middle East, the relationship between China and the US remains the key determinant of market movement given its knock-on effect on global trade and growth. Declining fixed asset investment and industrial production out of China this morning highlights the continued weakness that will continue to drag growth lower. The one bright spot came from the retail sales figure, which highlights a clear growth in domestic demand in the face of falling international business. While it may seem that there is no end in sight for this US-China spat, the G20 meeting between Trump and Xi Jinping could be the spark that reignites the trade negotiations once again.

Ahead of the open we expect the Dow Jones to open 42 points lower, at 26,065.

Share: Feed news

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.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

EUR/USD consolidates gains above 1.0800, awaits Fed Minutes

EUR/USD consolidates gains above 1.0800, awaits Fed Minutes

EUR/USD is holding gains above 1.0800 early Wednesday, having hit two-week highs on Tuesday. The US Dollar remains broadly weak, despite a mixed market mood, as investors weigh Fed rate cut bets and US government shutdown risks ahead of the Fed Minutes. 

EUR/USD News

GBP/USD clings to gains above 1.2600, all eyes on FOMC Minutes

GBP/USD clings to gains above 1.2600, all eyes on FOMC Minutes

GBP/USD is holding the renewed upside above 1.2600 in early Europe on Wednesday. The pair continues to draw support from hawkish comments from BoE Governor Bailey and an extended US Dollar weakness. The focus now shifts to the Fed Minutes, BoE- and Fed-speak.

GBP/USD News

Gold buyers retain control, with eyes on Fed Minutes

Gold buyers retain control, with eyes on Fed Minutes

Gold price sits at multi-day highs near $2,030 ahead of the Fed Minutes. US Dollar stays weak with the US Treasury bond yields, despite a tepid risk tone. Gold buyers flex muscles after recapturing 21-day SMA near $2,025. RSI flips bullish.  

Gold News

Bitcoin is 23% away from ATHs, but retail is still not here, why?

Bitcoin is 23% away from ATHs, but retail is still not here, why?

Bitcoin’s journey so far has been nothing short of shocking. From ETF approval to countries warming up to crypto regulation, the crypto landscape seems to have changed quite a bit.

Read more

Lots of dovish talk going around

Lots of dovish talk going around

The conversation around lower rates has been a theme this week after US data disappointed, Canada CPI came in soft, BoE Bailey offered up dovish comments, and China slashed rates.

Read more

Majors

Cryptocurrencies

Signatures