The markets couldn’t shake their trade war fears as lunchtime approached, the boards a sea of red as investors fret over Donald Trump’s latest bout of sabre-rattling.
The FTSE continued to chug along with a 100 points decline, that fall sporadically taking it the wrong side of 7600. The index’s commodity sector is really getting a hammering; BP (LON:BP) and Shell (LON:RDSa) fell 2.4% and 1.8% respectively, while miners like Anglo American (LON:AAL), BHP Billiton (LON:BLT) and Rio Tinto (LON:RIO) slumped anywhere between 3% and 4%. The eurozone indices were similarly shoddy; the DAX dropped nearly 170 points, keeping it below 12450, with the CAC slipping 1.2%.
The dollar managed to sneak ahead as the session’s main beneficiary, indulging in its safe haven status. Against the pound it nudged 0.2% higher, forcing cable back to $1.324, while against the euro it was up 0.3%. It couldn’t get a leg up over the yen, however, with the greenback dipping 0.1%.
The tone of the rest of the day is likely doing to be dictated by what the US markets do after the bell rings on Wall Street. The Dow Jones is looking at a 180 point drop when things get underway stateside, a move that would see the index just about keep its ahead above 24700.
Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved.