By Connor Campbell, Financial Analyst, Spreadex
Fear continued to grip the markets this Wednesday, the global indices stuck between a Pyongyang rock and a Donald Trump hard place.
The European decline only intensified as the day went on. The FTSE is now down 0.8% and firmly back below 7500 following a wave of commodity and banking sector losses. As for the DAX and CAC, they really lost their head, dropping 1.2% and 1.8% respectively, leaving the German index just 40 points away from last week’s 12100 3 and a half month low.
Over on the forex markets this latest US/North Korea development has merely provided more fuel for the dollar’s sour summer. It’s down 0.6% against the yen, while cable climbed 0.2% to cross the $1.30 it abandoned yesterday. The Swiss franc has been the biggest winner against the greenback, rising 1.2% as investors flood into a traditional safe haven. Interestingly the euro hasn’t been as successful as its peers, the currency instead trading at its worst price against the dollar for nearly 2 weeks.
Looking to the US open and currently the futures are suggesting the Dow Jones isn’t going to join the panicky trading of its European cousins. Instead the Dow is set to fall a far more manageable 0.2%; such a comparatively calm open could help pull the likes of the FTSE and DAX away from the edge.
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.