Heading into the close, the FTSE 100 has dropped by 30 points, while US equities are struggling once again.

  • Trade war fears hit equities once more
  • Recession worries as yield curve dominates headlines
  • Ferguson sheds ground despite strong update

Having been keen on US stocks yesterday, traders seem a bit more circumspect today, as Wall Street drops back, lead by financial stocks. A tweet from the president, defining himself as a ‘tariff man’ (perhaps one of the least exciting superheroes around), has reminded everyone that the issue of trade wars has not gone away, and indeed his apparent success regarding China (and even here details are sketchy) may well embolden him to push harder on his European allies. Some nervous types will also be concerned about the probability of a US recession, as the latest focus on the yield curve prompts fears of further economic weakness. But with an average of 14 months between inversion and recession, it might not be time to dump equities just yet.

There was plenty to like in Ferguson’s update this morning, but given the shares had risen 10% into the news it was hard for the shares to hold their ground. While there was little in the way of a positive surprise, the business continues to prosper in the US, and though there are increasing fears of weaker US economic data in the near future, the business still looks attractive over the longer term.
 

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 Forex Analysis

Editors’ Picks

EUR/USD: Bulls need an upbeat German IFO Expectations figure

EUR/USD dips as lingering US-China tensions bode well for the US dollar. Technical indicators suggest scope for a re-test of the lower end of the multi-week trading range. Deeper losses may remain elusive if the German IFO numbers beat estimates. 

EUR/USD News

GBP/USD retraces three-day losses below 1.2200 on UK/US holiday

GBP/USD sellers catch a breather amid a lack of major catalysts on Spring Bank Holiday. UK PM Johnson gets criticized while favoring Adviser Dominic Cummings. US-China tussle intensifies with eyes on US President Trump’s reaction over the Hong Kong issue.

GBP/USD News

Is this the beginning of the end for Hong Kong's autonomy?

On Friday, the Chinese Communist Party unveiled details of a plan to impose national security laws on Hong Kong. The true colors of the authoritarian regime in China are at full display to the rest of the world.

Read more

Gold down by $6 in Asia, weekly chart shows bullish trend exhaustion

Gold, a safe-haven asset, is flashing red at press time even though the growth-linked currencies like the Aussie dollar are struggling to gain altitude. Technical charts indicate scope for deeper declines in the short-term.

Gold News

USD/JPY keeps mild gains above previous resistance line, 200-HMA

USD/JPY bounces off an immediate support line to print a three-day winning streak. Thursday’s high appears on the bulls’ radar as immediate resistance. 107.00 could lure the bears below 200-HMA.

USD/JPY News

Forex Majors

Cryptocurrencies

Signatures