Our analysts have their fingers on the pulse of the world's financial market news.
US equities got slammed overnight, the Dow plunged a further 350 points as recent volatility shows no signs of abating. The list of concerns weighing on sentiment is stacking up at an alarming rate. What started as fears over higher US interest rates and trade wars
Data overnight showing that the Chinese economy grew at the slowest pace since the financial crisis initially sent Chinese stocks tumbling with the CSI 300 off 1.1% at its worst.
The outlook for the Chinese economy remains a concern. The impact of trade tariffs is not expected to be fully felt until Q4 and 2019. Then it will take more than a few soothing words to keep investors buoyant, serious measures to stabilise the economy will be needed.
China aside, markets across Asia took the lead from a weaker Wall Street, falling across the session. A combination of Chinese growth concerns, trade tensions and higher US rate fears proved to be a toxic combination for investor sentiment. European bourses are also pointing to a softer start. The FTSE looks set to buck the trend and open higher. The FTSE MIB is a noticeable
Euro Under Pressure as Brussels Heaps Criticism on Italian Budget
The euro was hovering around a one-month low versus the dollar as Italian spending plans were once again under the spotlight. The European Commission’s criticism of Italy’s draft budget, saying it is a serious breach of European Union rules, has increased the likelihood of a showdown between Rome and Brussels, unnerving investors. However, Brussels has limited power in this unprecedented situation, making its outcome all the more uncertain.
Pound Unimpressed with Brexit Transition Extension Talk
The pound experienced its worst session in a month, amid growing political tension in Westminster. Theresa May is under attack from both sides of the Brexit debate as she considers extending the post Brexit transition period in an attempt to unlock Brexit talks. By extending the transition deal, she would be giving the UK more time to strike a post-Brexit trade deal, therefore avoiding a need for a backup plan. With both Brexiteers and
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