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

Latest Forex Analysis

Editors’ Picks

EUR/USD: trade war optimism skews the risk to the upside

The EUR/USD pair has rallied to 1.1062 on Friday, its highest since September 20, as risk-on prevailed heading into the weekend. Reports on progress in trade talks between the US and China.


GBP/USD's rally stalls in the open as weekend headlines highlight Brexit deadlock

GBP/USD is a touch softer in the open on Monday, starting off the week in the consolidation of Friday's upside extension to the highest levels since mid-summer. 


USD/JPY: holding on to gains amid risk-on

The USD/JPY pair jumped to 108.62, its highest since late July, as news that the US and China are progressing toward a trade deal prompted speculative interest away from safe-haven assets. The pair is technically bullish.


China officially invited Lighthizer, Mnuchin and their teams for additional trade talks in China

According to Cristina Alesci, business and politics correspondent for CNN, China has officially invited the United States (US) Trade Representative Lighthizer and Treasury Secretary Mnuchin and their teams for additional trade talks in China ahead of next month's APEC summit in Santiago.

Read more

Gold slumps below $1,480 as risk appetite continues to dominate the market

The bearish pressure surrounding the XAU/USD pair on Friday intensified in the last hour as markets continue to price a possible trade deal between the United States (US) and China.

Gold News

Forex Majors