Our analysts have their fingers on the pulse of the world's financial market news.
Shares in Asia were mostly higher overnight with Chinese markets leading the gains. Chinese inflation figures came out ahead of expectations, showing no signs of a cooldown in the economy despite risks of a trade war. Recent survey data had suggested confidence was falling but there will be some relief that has not yet transpired in the hard data. On Tuesday China announced a tit-for-tat response to new US tariffs with a 25% tariff on $16bn worth of US goods. For the moment markets are taking some heart from the fact that China is merely matching US tariffs and seemingly not trying to ratchet up tensions via trade or currency.
In forex markets, the British pound has been the major mover in the last 24 hours as Brexit uncertainties weigh. While the pound continues to fall against the dollar, it also dropped below key levels against the euro, marking its weakest since November last year. With the UK parliament in recess, the feeling from traders seems to be that no news is bad news and that it's better not to take the risk of holding the pound.
Oil markets recovered slightly on Thursday after taking a battering following EIA inventory numbers. The figures showed less of a drawdown in inventories than expected. The Iran sanctions appeared to be baked into the price and without a fresh catalyst, oil looks to have made an interim top.
The information and comments provided herein under no circumstances are to be considered an offer or solicitation to invest and nothing herein should be construed as investment advice. The information provided is believed to be accurate at the date the information is produced. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please note that 79 % of our retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing money.
Trading on Wall Street was lacklustre, with the S&P moving between small gains and losses before moving lower into the close. News that a meeting between President Trump and China’s President Jinping Xi was being pushed back into April served to dampen dem…Read more