Heading into the close, the FTSE 100 is 60 points higher, but US markets are struggling.
A slow start to the US session threatens to undermine the gains seen in Europe, but with trade concerns now front and centre once again it is not surprising to see Wall Street struggling to build up a decent head of steam. While progress of any sort would be good to see, unless there is real direction from the top the discussions will go nowhere, and it seems President Trump is in no hurry to get a deal done ahead of the 1 March deadline. It seems odd not to see much follow-through on equities shortly after a Fed policymaker aired the idea of QE outside of emergency situations, which probably speaks to how cautious investors are at present. But after a remarkable bounce from the lows, it will take something truly special to ignite another move higher.
Sterling remains under pressure, and it is not hard to see why confidence continues to drain away from the UK, as politicians dither despite a looming deadline. The sensible thing would be for both sides to call for an extension to Article 50, but that comes with so many problems on all fronts that it remains unlikely. The PM’s statement tomorrow may move the dial, but given recent events a break in the deadlock seems difficult to envisage.
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.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.