Week starts on a softer note

Fiona Cincotta
By :  ,  Senior Market Analyst
The FTSE is in negative territory, as are most European indexes as the effects of a plunge on Wall Street late Friday are being felt in Europe. The Federal Reserve’s decision to abandon this year’s rate hikes continues to unnerve investors as do weaker economic indicators in Asia.

The rally of a million protestors against Brexit in London this weekend generated some impressive newspaper front pages but did little for UK currency market which remains in a painful limbo. The pound is flat lining against the dollar and the euro amid a complete political limbo and although technical charts point to a slightly stronger course this week this may not materialise while Brexit remains unresolved.

The dollar weakens

The dollar is also struggling against a number of currencies this morning as investors are taking some profit off the table following the greenback’s gains late Friday. With the US equity market unstable the flight to safe havens like Treasuries and gold is set to continue.

Asian shares tumble

Asian shares closed lower as concerns about the state of the Chinese economy continues to seep into the stock markets. The news flow on US-Sino relations continues to blow hot and cold and the wisest move for investors may be to wait it out until the upcoming Trump-Xi Jinping summit. 

The latest news flow shows that sticking points between the two sides still remain in place, not least China’s refusal to relax restrictions on digital trade.
Related tags: UK 100 Wall Street GBP

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