Investors are a bit shell shocked after a week of trading that has seen continued weakness in equity markets and turmoil in some emerging markets such as Brazil , Argentina and Turkey. High flying US tech stocks which has led the US market higher all year were hit after the US government indicated that they will increase regulations to limit some of the market power. Stocks such as Facebook , Apple and Twitter were sharply lower on the week.
Trade tensions continue to ratchet higher after the US deadline to dramatically increase tariffs on China passed , so at any time we should hear from Trump who I think is keen to take on China. Markets do not like the uncertainty and companies would seem to be delaying any expansion until the trading environment is clearer.
Latest prices are :
FTSE 7338 down 43 / DAX 11984 down 56 / CAC 5264 up 2 / MIB 20430 down 97.
EUR 1.1630 up 3 / GBP 1.3012 up 89 / JPY 110.80 weaker by 32 / DXY 94.85 down 13.
Gold 1200.75 up 0.90 / Brent Crude 76.40 down 11.
US10 2.88% / UK10 1.33% / DE10 0.37%
Stock indices are all in downtrend and with US payroll numbers out tonight (exp 197k new jobs) we may get a trading bounce.
US Dollar was strong at the start of the week but has slowly lost ground to the GBP as a soft Brexit plan looks more likely , and the EUR. AUD continues to weaken after central bank indicated no rate rise for a while.
Bond yields remain in range with no clear short term trend. Longer term is still looks likely that US rates will continue higher to maybe 3.25% before any pause in rate rises.