Following Tuesday’s fall the European markets have tried to pick themselves up on Wednesday, edging back into the green.
Sentiment was perhaps helped by a better than forecast UK inflation reading, which hit 1% against the 0.6% expected. That may give hope that the Eurozone-wide figure will come in higher than the 0.4% currently estimated.
In response the FTSE squeezed out a 0.2% rise, pushing it to 6080, with the DAX up 0.3% and the CAC climbing 0.4%.
Looking ahead and the Dow Jones is set to be similarly shy in its gains, the futures pointing to a 0.1% increase.
Something that will be playing on investors’ minds, and contributing to the rather limp open, are the latest developments between the US and China. When the weekend’s videoconference trade talks were delayed, reports suggests the reasons behind the postponement were a) scheduling conflicts, and b) Beijing needed more time to buy up American exports as per the ‘phase one’ agreement.
However, Donald Trump claimed on Tuesday night that he was behind the delay, stating ‘With what they did to this country and to the world, I don’t want to talk to China right now.’ Whether or not this was the actual reason behind the postponement, it’s another inflammatory comment from the President, further stoking the fires of conflict given it comes only a day or two after the most recent Huawei restrictions announcement.
"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."