In a week to remember it was a session to forget, investors not unjustified in their reticence to act.
Pretty much summing up trading, the Dow Jones opened flat. The US index is sat just under 28000 – a strong rebound from last week’s 27300-grazing lows, but below its November-ending 28200 all-time highs. Similarly the FTSE edged up by 0.1%, but with the DAX and CAC slipping around 0.2% apiece.
Though Wednesday has the final Fed statement of the year, it is going to be hard for American investors – and investors in general – to wrench their attentions away from the state of play between the US and China heading into Sunday’s tariff deadline. So pressing is that matter that Thursday’s UK general election is more of a local sideshow than the week’s big macro event.
Speaking of the election, the pound saw its early gains trimmed oh-so-slightly as the day went on, uncertainty surrounding the vote lingering despite the Conservatives maintaining a consistent – if of varying strength, dependent on which poll you look at – lead over Labour.
Sterling now just wants Brexit done, a telling about-face considering the plunge it suffered following 2016’s referendum result, which means the Tories are its favoured party. Its current levels – 7- and 31-month highs against the dollar and euro respectively – suggest it is confident of a blue majority come Friday morning. It also leaves the currency with plenty of room to fall if Britain produces the latest in a string of electoral upsets.
"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."