UK political upheaval not unsettling the markets as expected


As the trading week gets under-way, once again it is the political world that has the attention of markets. The decision by the UK’s Brexit Secretary David Davis to resign late on Sunday evening may have been expected to unsettle some – but that hasn’t been the case so far.

10 July, Capital.com At mid-morning, the UK stock market was slightly higher and that Brexit-barometer – the pound – was trading at its best levels for almost a month. At first glance, this rise might seem somewhat illogical. But traders seem to be taking the weekend discussions and Davis’ resignation as the sign that a soft Brexit could be on the cards  – although the resignation does not exactly add much stability to Prime Minister May’s government.

US President Trump will visit the UK

Politics is likely to be making the headlines for the rest of the week as US President Trump visits the UK.  But it’s another important week for the US markets as it is the start of earnings season. it kicks off on Tuesday with Pepsico but the main focus is likely to be Friday when the banks such as JP Morgan and Citigroup reveal how the last quarter was for their businesses. Expectations are running high that the last three months have been good ones – any misses here could well dent the near 105 recovery US stocks have enjoyed over the past three months.

Oil remains below recent hights

In other markets, oil remains just below its recent three and a half year high. The last 12 months have seen the crude price rise by 70%, with little impact so far on the bigger economic picture. It does feel as if something needs to give here – $100 a barrel oil would surely start to slow down the world economy, but for now at least any dips in the price of crude just serve to fuel more buying.

About Capital.com

Capital.com is an insurgent fintech on a mission to make the world of finance more engaging, accessible and useful. With an award-winning financial trading platform, available on web and app, it uses patent-pending technologies to revolutionise the trading world.

The platform’s SmartFeed works to detect clients’ trading biases and recommends personalised content to help them trade smarter.

 

With the ultimate goal of improving clients’ trading performance through education, Capital.com delivers financial lessons, videos, quizzes and more through its Investmate app.

Find out more at https://capital.com/

Facebook: https://www.facebook.com/capitalcom/

Twitter: https://twitter.com/capitalcom

LinkedIn: https://www.linkedin.com/company/capital.com/

Trading is risky and you may lose all of your invested capital.

The company is licensed by CySEC, license 319/17.

Share Your Opinion, Write a Comment