Fiona Cincotta September 9, 2020 9:36 AM
FTSE rebounds as weaker pound overshadows AstraZeneca
US tech stocks were in the firing line once again overnight with the Nasdaq weathering a 4% drop whilst Tesla tanked over 20%. The selloff in the tech heavy Nasdaq took the Nasdaq into correction territory for the second time this year.
Brexit Hits Pound
The UK today will release its internal markets bill which has caused some controversy. Whilst the British government is painting this to be a tweaking round the edges of the Brexit withdrawal agreement and a clarifying of trade between the UK and Ireland, the EU is seeing this through a very different set of eyes. The EU is viewing this as an overriding of an international treaty and breaking international law, making the UK government appear very untrustworthy.
This latest development in the Brexit story is having a huge a big impact on GBP which has plunged over 1.3% yesterday and is off further today. GBP/USD trades over 2.3% lower this week so far, unwinding gains across the past month. A
There is a good chance that the Pound could extend losses now as we head towards the October 15th deadline as the reality of a no trade deal Brexit starts to hit home. Up until now there had been an assumption that the EU and the UK would pull the cat out of the bag and agree a deal at the last minute. Any tampering with the Brexit divorce bill would means the chances of a trade deal are significantly lower.
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.