Despite the unresolved political situation in Germany, a brewing Tory backlash over the Cabinet’s movement on the EU divorce bill, and an unexpected widening of the deficit ahead of tomorrow’s Autumn Budget, things were pretty damn quiet this Tuesday.
Investors seemed wary of getting too involved with the forex markets. The pound is flat against the dollar and up 0.1% against the euro, while the euro itself effectively unchanged against the greenback, sporadically dipping 0.1%.
This forex flatness has allowed the European indices room to breathe. The DAX is up half a percent, ignoring the issues with the German government (or lack thereof) to hit a fresh 8 day high; the CAC, meanwhile, has risen 0.4%, with the IBEX also climbing 0.2%. Somewhat predictably the FTSE couldn’t muster the same level of energy as its peers, struggling to break 7400 with a meagre 0.1% rise.
Looking to the afternoon and the Dow Jones seems set to claw back more of its recent losses, with a 0.2% increase leaving it 20 points away from 23500. There’s not much worthwhile data to contend with – the existing home sales are expected to rise from 5.39 million to 5.42 million – meaning the focus will likely remain on any pre-Thanksgiving movement in the Republicans’ tax plans.
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. In relation to fixed odds, Spreadex Ltd is licensed and regulated by the Gambling Commission under licence number.