FTSE drops as trade hopes are dashed
Fiona Cincotta November 8, 2019 11:16 AM
The FTSE and European gauges were all in the red after a White House adviser dashed hopes of a quick US-Sino agreement
The FTSE and European gauges were all in the red after a White House adviser dashed hopes of a quick US-Sino agreement. Markets have bounced this week on the premise of the US and China partially lifting tariffs on one another’s goods but Friday morning White House Director of Trade Peter Navarro poured cold water on that optimistic view saying that there was no agreement yet to remove any of the existing tariffs. Miners and British Airways parent IAG were the hardest hit, causing the FTSE to drop nearly 0.3%.
The euro moved in nano steps against the pound – a touch higher – and against the dollar – a touch weaker despite German export data showing a surprise increase in September.
The numbers can be interpreted as an indirect indicator of the state of the rest of the Eurozone because more than half of it is exported to member states. Other recent data shows marginal pockets of improvement in the European economy but far from enough to call a sustained trend. The view was echoed Friday by an ECB governing council member who said he expects that it will take a longer period of time for conditions to improve.
The pound is barely breathing against the dollar but there could be more volatility later in the day as election chatter intensifies. The SNP has just launched an election campaign based on what they call “escaping Brexit” and involves a promise of a second referendum on Scotland’s independence. The dollar is a touch higher against the safe havens as it has built in expectations of the China-US trade deal.
Disclaimer: The information on this web site 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. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.