CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Global Markets Take the Lead from a Softer US Session

Article By: ,  Financial Analyst
December 6, 2017 9:30 AM

European markets are seen opening lower on Wednesday, following the lead of the US and Asia, which saw softer sessions, with the Nikkei slumping almost 2%. 

The Dow, S&P and Nasdaq gave up early gains, with the Nasdaq reversing a 1% increase, to close 0.2% lower last night. The sell off in tech stocks which started earlier in the week, resumed with investors looking to rotate out of tech stocks into areas which are expected to benefit more from the US tax reform, which is currently travelling through Congress.

Investors had initially been giving the tax reform the benefit of the doubt, however questions over how much impact it can have, are starting to cap the tax reform rally. This is a country which is already experiencing economic growth of over 3%. After a weaker session last night, the US futures are pointing to a lower open later today.  

As a potentially welcomed distraction, the US session today will see investors start to look towards the non-farm payroll report at the end of the week. The ADP private payroll data released this afternoon, often acts as a guide as to what we can expect from the US labour department report on Friday. 

FTSE looks to push below 7300 

Here in the UK the FTSE dropped on the open and is trading some 0.4% lower as it looks to break below 7300. This is the FTSE’s third attempt on the level this week after so far failing to make an meaningful break below it. A weaker pound is offering some support to the FTSE, which is fairing better than its European counterparts – the Dax is trading over 1.2% lower in early trade. 

Brexit woes and political infighting keeps pound low 

Brexit woes and domestic political risk are keeping the pound in the red this morning. Whilst UK Prime Minister Theresa May is scrambling to try to find a solution to the Irish border issue, Tory Brexit hardliners Boris Johnson and Michael Gove, are planning a revolt, should May use this as an opportunity to remain closely aligned with the EU. 

Investors are aware that this division in her cabinet, could undermine chances of a Brexit deal being reached before the deadline next week. Furthermore, if a Brexit divorce deal does go through, the division of how the UK cabinet sees the future relationship between the UK and EU could create a lot of problems when discussing trade deals.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024