Start of the month doesn't hold much promise
Fiona Cincotta June 3, 2019 10:27 AM
After a lot of position squaring at the end of last week the new month’s trading has not got off to a good start. Instead, European stocks are lower across the board and the FTSE is down 1.07% as the rumbling trade tensions between the US and Mexico and China’s barbs directed at the US take their toll.
After a lot of position squaring at the end of last week the new month’s trading has not got off to a good start. Instead, European stocks are lower across the board and the FTSE is down 1.07% as the rumbling trade tensions between the US and Mexico and China’s barbs directed at the US take their toll. Oil prices have dropped to their lowest since January, dampening energy firms’ share prices and recession fears are hitting consumer goods companies.
Later today Mexico and the US will try and resolve the issue of illegal immigration in high level talks which will address President Trump’s threat to start taxing Mexican imports into the US from early June.
Oil prices head towards $60 on recession concerns
Brent crude prices have plunged to just below $61 – having traded close to $70 throughout May - and are heading lower as the unsettled situation between the US, China and Iran stokes fears that recession will erode global oil demand. Frictions in the Middle East still remain a factor and may prove a counterweight at a later stage.
Brexit, Tory leadership and the pound
The pound is trading higher but the sunshine may not last long given that the Brexit rhetoric among the contenders for the Tory leadership post is becoming more intense. After a good start sterling is now gradually heading lower in a straight line, not helped by the no-deal Brexit option coming back into play.
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