FTSE and European Markets lower

The prospect of a pre-Christmas general election, an expected rate cut from the Federal Reserve and stalling of the Sino-US trade talks cast a cloud over European trading this morning, pushing the FTSE, the DAX and EuroStoxx lower.

The prospect of a pre-Christmas general election, an expected rate cut from the Federal Reserve and stalling of the Sino-US trade talks cast a cloud over European trading this morning, pushing the FTSE, the DAX and EuroStoxx lower.

One bright spot was the car sector with Fiat Chrysler and Peugeot making their merger talks public. Shares in clothes retailer Next took a 3% hit after the company said that it will keep its annual guidance unchanged despite stronger October sales.

Dollar slides ahead of Fed, GDP data

The dollar is on the back foot against the euro and the yen as the Fed prepares to go into the second day of its rate setting meeting. The markets are treating a 25 basis points rate cut this afternoon as a done deal but what will be of interest is to see if the Fed’s Jay Powell will confirm, as investors expect, that the central bank will pause its rate cutting for the moment.

A UK pre-Christmas election now seems to be almost certain, awaiting one final vote in the Lords. The only thing that is certain now is that the UK is not leaving the EU before the end of the year, and all other options are up for grabs. Sterling has firmed a touch against the dollar, trading at $1.2877, and is flat against the euro.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.