UK election uncertainty proves a drag for GBP
The pound has come under pressure once again, with political uncertainty building on economic concerns. Meanwhile, Snap shares have lived up to their name, with the Nasdaq coming under pressure as a result.
Sterling slips as political uncertainty builds on wider bearish sentiment
“The pound finds itself back under pressure today as traders are faced with yet another bout of political uncertainty and economic concerns. This morning’s retail sales data highlighted the struggles facing consumers and businesses alike, with people spending 3.9% more for 6.9% less goods. Meanwhile, traders are faced with yet another bout of political uncertainty, with Penny Mordaunt officially throwing her hat into the ring for a potentially doomed two-year stint that will likely be dominated by inflation and recession.”
Snap shares drag Nasdaq into the red
“The tech-focused Nasdaq lagged its US peers today, with Snap shares capitulating on growing losses thanks to inflation fuelled advertising struggles. Slowing growth and rising losses bring little confidence for a stock that is largely priced on future revenues. Unfortunately, we are seeing both businesses and consumers tighten their purse strings thanks to rising costs, with advertising revenues dented as a result. With five of the top six largest stocks on the Nasdaq releasing earnings next week, we can expect plenty of volatility as traders weigh up the implications from rising inflation on spending habits.“
Author
Joshua Mahony MSTA
Scope Markets
Joshua Mahony is Chief Markets Analyst at Scope Markets. Joshua has a particular focus on macro-economics and technical analysis, built up over his 11 years of experience as a market analyst across three brokers.
