The pound is almost flat against both the dollar and the euro during early Thursday trading. Today brings the UK’s self-imposed deadline for a post-Brexit agreement to be reached with the EU but despite no such deal being in place and a prevailing risk-off sentiment in the markets, investors don’t seem to believe the UK will walk away from negotiations empty handed. This could be because, faced with a battered economy, climbing COVID-infection numbers and an increasingly tense domestic political environment, the last thing Boris Johnson’s government needs is another fire to extinguish.
European stocks drifted significantly lower at the opening bell on Thursday alongside Asian markets and US Futures, with benchmarks now heading for a third bearish trading session in a row. This sudden change in investors‘ trading stance took place after the first slew of earning reports fell short of global expectations. This is especially true with Roche and Total in Europe while US investors have been disappointed by results from Bank of America and Wells Fargo. In addition, the fact the widely anticipated next US stimulus deal is unlikely to be reached prior to the presidential election is unwelcome news for stock investors around the world. However, the trading mood may change through the day as investors wait for major US data today, with the US jobless claims in sight, as well as results from Morgan Stanley and Charles Schwab. Most EU benchmarks, such as the DAX-30 Index, are now trading close to major support levels and a sharp reaction from bull traders will be needed today to prevent markets from deepening their bearish corrections.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.