Trade tensions PMs future and elections weigh on markets
The PM is preparing to publish a revised Brexit deal on Friday giving MPs the chance to consider it before a vote on 7 June. However, time could run out on her as senior Tory MPs are planning to move against her before the end of the week unless she abandons the vote plans.
Sterling declines on political uncertainty
The question of who will be in Downing Street in June is playing out against the backdrop of European elections which for the UK will be an indirect vote on Brexit. It will take until Sunday for a final tally of the vote and the wait is causing the euro to lose some ground against the dollar.
The PM’s uncertain future is unsettling sterling trade and the pound is slipping to one of its lowest levels this year.
Percolating US-China trade issues hit Wall Street at the close yesterday and have caused Asian shares to slump to their lowest level in four months.
The FTSE followed suit this morning with a 0.7% decline before it started turning the corner a little. Travel companies, super markets and food delivery services are among the biggest fallers this morning. The oil market also couldn’t escape the rising trade tensions causing Brent Crude prices to lose 0.9% to trade just above $70.
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