Markets are sensitive to the geopolitical risks which linger from the weekend’s events. North Korea’s failed nuclear tests have weighed down stocks this morning. Demand for safe-haven assets like the Japanese yen and gold has slightly waned on Tuesday, after a sharp rally on Monday.
Investors have turned their attention to the French elections, which take place later this week. Polls suggest the race is tightening, adding to the geopolitical risks clasping the globe.
Gold has made some stunning advances this month as investor’s concerns help to amplify demand for the precious metal. Gold has inched up 0.15% today, at $1286.01.
Disappointing US data has damaged the liklihood of a June rate hike. US consumer prices in March fell 0.1%. US Building Permits will be released later today – a key indicator of growth in the US economy.
Earnings season is now well underway. Companies due to release their results today; Bank of America (NYSE:BAC) and Goldman Sachs (NYSE:GS).
The S&P 500 closed 0.9% higher on Monday, thanks to the optimism surrounding US earnings season.
However, the good news for equity markets stops there. All major indices are down as the trading session gets underway.
- CAC 40 is down 2.40% at €4940
- DAX 30 is down 0.4% at €12057
- FTSE 100 is down 0.7% at £7193
- S&P 500 is down 0.38% at $2336
- DJ 30 is down 0.3% at $20502
- Nasdaq 100 down 0.33% at $5378.75
Currency Cove
The EURUSD is trading up 0.12% at $1.065. The dollar is inching downwards thanks to the discouraging economic data. The Euro is trending upwards as investors refunnel their investments into the dollar’s main substitute.
The Turkish lira is 0.2% lower as investor’s mull over the repercussions of the latest referendum in Turkey, which poses to keep president Erdogan in power until 2029.
Sterling is slightly lower after UK prime minister Theresa May made a surprise statement this morning. May has called an election to take place on the 8th of June.
Commodity Corner
Crude oil is shedding some of the gains it made last week. The commodity is down 1.1% this morning at $52.63.
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