U.S. Markets Fall, Hopes For A Trade Deal Fade, BREXIT Talks Close To Failure

Global stocks fall as hopes for a trade deal fade and Brexit negotiations hit the rocks.
Thomas Hughes

The U.S. Futures Moves Lower In Early Trading

The U.S. futures are moving lower in early Tuesday trading after a series of events led traders to believe U.S./China trade negotiations are going nowhere. On the U.S. side of the equation, the White House has expanded its blacklist of Chinese companies by 28. The move is intended to help protect Chinese Muslim minorities that are being persecuted in the country. On the Chinese side of the equation, China’s Sout China Morning Post reports that government officials have toned down their expectations for a deal. Further, Chinese representative Vice Premier Liu He will not carry the Special Envoy title signifying his official status in the talks.

The Dow Jones Industrial Average is in the lead with a loss near -0.29% while the S&P 500 and NASDAQ Composite are close behind. In economic news, September PPI was much weaker than expected and ups the odds for an FOMC rate hike this month. Headline PPI fell by -0.3% during the month leaving the YOY gain at only 2.0%. 2.0% is the Fed’s target rate but with the pace slowing, it is clear the economy is slowing. At the core level, PPI also fell -0.3%.

European Markets Fall As BREXIT News Fails To Soothe Frayed Nerves

European markets are also moving lower on Tuesday due to the downturn in trade hopes. The sentiment was further soured by news the BREXIT talks were close to breaking down. An expectation a solution to the Irish-Backstop had developed over the weekend but that is now dashed. With the BREXIT only three weeks away it is becoming increasingly likely there will not be a smooth transition.

The DAX is in the lead in early trading posting a loss of -1.05% despite better than expected IP numbers. Industrial Production in the EU’s largest economy rose 0.3% versus an expectation of 0.1%. The news suggests that Germany’s broader economy may avoid recession but concerns over slowing remain. The French CAC is also down about -1.05% while the UK FTSE 100 is trailing at -.035%.

Asian Markets Are Broadly Higher

Asian markets are broadly higher despite signs a trade deal between China and the U.S. will remain elusive. The Nikkei leads with a gain of 0.99% while most others advanced 0.25% to 0.45%. Analysts at JP Morgan are certain no deal will be made other than maintaining the current status quo. It is possible Trump will delay or suspend tariffs set to take effect next week but traders are cautioned not to put much hope in that outlook.

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

Top Promotions

Top Brokers

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