Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Traders Nervy Due To North Korea And May Day

Published 22/09/2017, 11:08
Updated 03/08/2021, 16:15

Stocks in Europe are mixed this morning as the North Korean situation has taken a new turn. Pyongyang has threatened to test a hydrogen bomb in the Pacific. This comes after Donald Trump’s speech at the United Nations, and calls for tougher sanctions against the state.

Traders are certainly keeping an eye on the developments in the region, but while there is no military action, there will be some investors who will hold their nerves through the tense stand-off.

Johnson Matthey (LON:JMAT) had a stellar performance yesterday, and the positive run continues after a broker upgrade rom Credit Suisse (SIX:CSGN). The investment bank raised its price target for the company to 3700p from 3500p.

A drop in copper and iron ore prices has prompted a sell-off in mining stocks like Antofagasta (LON:ANTO), BHP Billiton (LON:BLT), Anglo American (LON:AAL) and Glencore (LON:GLEN). The basic resources companies are some of the biggest fallers on the FTSE 100.

The EUR/USD has rallied this morning after France and Germany posted impressive manufacturing and services data. The reports from both countries exceeded economists’ estimates, and showed an increase in growth on the month. The single currency has clawed back a lot of the losses it incurred against the greenback in the wake of the Federal Reserve being more hawkish than expected.

The GBP/USD will be in focus today as Theresa May is expected to deliver a speech in Florence, outlining her plans to push the Brexit negations forward. There ae many areas that will be touched upon, but ultimately traders will be looking at how ‘soft’ or ‘hard’ the trade aspect will be.

We are expecting the Dow Jones to open 15 points lower at 22,344, and we are calling the S&P 500 down 1 point at 2499.

At 2.45pm, the US will release the manufacturing and services reports for September, and traders are expecting a reading of 53 and 55.8 respectively.

Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

Original post

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.