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European Market Update 30 August 2018

Posted by Tim Sholl on 30-Aug-2018 20:55:32

European stock indices have turned lower in early trade today after strong markets for this week after the sentiment improved with the success of the US/Mexico trade deal and the flow on to Canada Europe and eventually China. It seems likely that the US will deal favourably with both Canada and Europe and then come up against China , which will be a lot harder. The US seems to be trying to change Chinas industrial policy , something on which i believe they will not budge. So I think the US is going to need to focus on another target which is realistic and possible.

Stock indices are currently trading as follows:

Dax 12443 down 0.98% , CAC 5475 down 0.47% , MIB 20631 down 0.50% , and FTSE at 7504 down 0.85%

European indices are generally positive at moment while FTSE is looking negative on Brexit concerns.

The currency market has seen the US Dollar weakening over past week with the EUR now at 1.1700 flat on the da but up strongly over week , the GBP has rallied on a belief that the hard brexit scenario is looking less likely after European negotiators commented that some sort of deal was important for both sides. now at  1.3020 dowm 0.07%. the JPY has weakened overall but today is steady at 111.62.  The DXY is last at 94.52 and trending lower and does not seem to be able to turn higher. Gold is at 1204.55 still down near recent lows.

Bond yields have move higher after the trade tensions reduced with a deal with Mexico seen as a precursor to further success. US10 at 2.87% , the UK10 at 1.48% , and GE10 at 0.39%.

 

Topics: Trading, Market News, European Market Update