Global Markets Rebound, Geopolitical Fears Ease, Trade War And Central Banks Remain In Focus

Global markets rise as geopolitical fears ease, traders are cautioned not to be overly optimistic as U.S./China trade ties remain a threat to economic stability.
Thomas Hughes
Optimistic Trader

The U.S. Indices Are Moving Up In Early Wednesday Trading

The U.S. futures are indicating a positive open on Monday after events in Hong Kong and the UK helped ease global tensions. In Hong Kong, city manager Carrie Lam withdrew the controversial bill that sparked the last few months of violent protesting. The move is seen as one that may help smooth the way for a U.S./China trade deal because it reduces turmoil for China at home.

In the UK, a bipartisan group of MPs has successfully moved to introduce a bill that would block a hard-Brexit. The bill is yet to pass and PM Boris Johnson has already began the push for snap-general elections. Needless to say, while the news is good today it does little to alter the fact Brexit drama is going to intensify over the next 8 weeks.

Today’s move in the indices is just a day after weaker than expected manufacturing data sent the market down more than -1.25%. The NASDAQ Composite is in the lead with a gain of 1.05% while the Dow Jones and S&P 500 are both up about 0.85%. In stock news, shares of Michael’s are moving higher after announcing much better than expected 2nd quarter results. The arts and crafts retailer says comps were strong and should drive growth the remainder of the year. Shares advanced more than 20% on the news.

EU Markets Are Higher, The Hard-Brexit Is A Little Less Likely

EU markets are broadly higher although gains are not even among the top indices. The DAX and CAC are both up more than 1.0% while the UK FTSE 100 trails with a gain near 0.40%. The Brexit news is good for general sentiment, it may stave off the economic chaos of a no-deal exit, but it does little to calm frayed nerves in the UK. The drama will continue and, if the bill is passed, maybe prolonged indefinitely. Autos are up more than 2.0% on today’s news as is the British Pound.

Elsewhere in the region news is good as well. The word from Italy is that opposition party members voted overwhelmingly in favor of forming a coalition with the current ruling party. The news means Italy can form a new government under the existing PM. In stock news, shares of Thales are up 7.0% on 2nd quarter results while Iliad is moving lower and at the bottom of the rankings after a downgrade from BAML.

Asian Markets Are Mostly Higher On Wednesday

Asian markets are mostly higher on Wednesday following Carrie Lam’s withdrawal of the controversial extradition bill. Hong Kong led the gains with an advance near 4.0%, others in the region were less buoyant. The Shanghai Composite advanced nearly 1.0% on news the Chinese manufacturing sector expanded at the fastest rate in three months. Shares in Australia were the only to close lower, the ASX shed about -0.30% after GDP came in as expected at 0.50% MOM and 1.4% YOY.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US