Markets Waver, Sentiment Sours, Conflicting Trade News Heightens Uncertainty

Global markets tread water at new highs while conflicting trade news weighs on sentiment.
Thomas Hughes
Bull Market Trend Cast In Gold

The U.S. Markets Waver In Early Monday Trading

The U.S. futures market wavered in early Monday trading after conflicting trade news heightened uncertainty. Last week, Senior Economic Advisor Larry Kudlow said the U.S. and China were close to reaching a Phase One Deal. Over the weekend, that news was seemingly confirmed by China’s state-run news agency. The Xinhua News Agency reported constructive trade talks between Lui He and Steve Mnuchin concerning core differences. Today, reports have leaked Chinese senior officials are pessimistic a deal will be reached. At stake now, China’s purchases of U.S. agriculture products and rollback of U.S. tariffs on Chinese goods.

The Dow Jones Industrial Average had been up about 0.25% in early trading. That move reversed to a loss of -0.20% after the negative trade news. The S&P 500 and NASDAQ Composite are also both indicated to open slightly lower. In earnings news, the 3rd quarter earnings season is largely over. More than 95% of the S&P 500 have reported earnings, the bulk of companies left are in the retail sector. This week, traders will be on the lookout for reports from Home Depot, Lowes, TJ Maxx, Kohls, Urban Outfitters, and L Brands. In economic news, no major reports were released today. Later in the week traders will be watching for housing starts/building permits, the FOMC minutes, and leading indicators.

Europe Is Mixed, Trade And Politics Confound Market

European indices had been marginally higher going into the midday hour. The indices gave up their gains after the negative trade news was released. The DAX is in the lead with a loss of -0.60% while the CAC is close behind. The UK FTSE 100 is hovering near break-even while traders wait on key speeches from PM Boris Johnson and his main rival. The two are expected to address the Confederation of British industry, Johnson is expected to reiterate his commitment to taking the UK out of the EU.

In stock news, financials are in the lead at midday with gains near 0.60% while autos lag with a loss of 01.50%. Shares of Spanish bourse BME are up 37% following a takeover bid by Swiss market SIX. Insurer Aviva is down more than -4.25% after it affirmed staying in Asia despite a review of business operations.

Asian Market Mostly Higher On Trade Hopes

Asian markets are mostly higher at the end of the session on Monday. The Hong Kong Hang Seng led with a gain of 1.35% despite ongoing violence in the region. The Australian ASX and Korean Kospi both posted small losses, less than -0.10%, while the Nikkei and Shanghai both advanced about 0.50%.

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