Markets back in full-swing as UK return from bank holiday…
Even though London were not at their desks yesterday, it did not stop a volatile session playing out. Weekend headlines between the US and China kept participants on their toes as they had to deal with some ugly opening gaps on Sunday evening. Stocks plunged and safe-haven currencies were solidly bid as trade concerns once again returned to the forefront of the market. Trump announced new tariffs as soon as markets had closed late on Friday night. When asked over the weekend whether he’d had 2nd thoughts, it transpired his answer of yes actually meant he’d wished to have increased them higher.
The pound and euro both rose against the US dollar as soon as FX trading got under way on Sunday evening. The Japanese yen and Swiss franc saw huge gaps in their favour. Risk-off mode continued until 8am (European market open) when Trump stated that Chinese officials had called him over the weekend to confirm their desire to re-engage. This was heavily denied by many prominent Chinese ‘insiders’. However, the market took his comments well and managed to reverse much of the earlier weakness. Stocks closed a volatile Monday near their highs while FX markets reversed much of their initial movement with the Greenback stronger against the majority of its peers.
This week’s highlights include US 2nd quarter GDP on Thursday as well as flash Eurozone inflation on Friday.
Written by Viv Savani. 8:43am, August 27th 2019
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9:21am, August 29th 2019
PM Johnson’s request to prorogue Parliament accepted by Queen…