Following the Dow Jones hitting its all-time high on Monday, indices saw trade War optimism run out of steam on Tuesday. European markets began in a fairly unenthusiastic manner, with tensions not yet resolved and today’s UK services PMI.
Commenting on the market’s opening movements and trade war tensions, Spreadex Financial Analyst Connor Campbell stated,
“The swell of trade optimism, enough to drive the Dow Jones to a fresh all-time high on Monday evening, failed to really carry over to Tuesday morning.”
“Instead the European markets yawned their way through the open, huffing the fumes of yesterday’s positivity to ensure that at the very least they kept their recent multi-week/month/year highs intact.”
“The FTSE, which is yet to recover all the losses incurred at the very start of October, added a handful of points, unable to cross 7400 but still at its best price in a month. The DAX was sitting pretty at 13130 without really moving, while the CAC was similarly unchanged at 5820, a level last seen 12 years prior.”
“Sterling, which on Monday showed its first election jitters – or, rather, the first since the vote was confirmed; in the run up to that announcement it was repeatedly anxious about the prospect – also failed to do much. Cable nudged up 0.1%, but remained shy of $1.29; against the euro, meanwhile, the pound was flat at €1.157.”
“If the currency is in the mood to look beyond politics, there’s the small matter of the latest UK services PMI. Analysts are expecting the mildest of improvements, from 49.5 to 49.6 month-on-month.”
Regarding Company news which has made markets nervous; Lloyds Banking Group (LON: LLOY) results disappointed and Deutsche Bank (ETR: DBK) reported losses during the third quarter.