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Global Markets Are Cautious, Trade Talks Yield Mixed Results, No Deal Expected Soon

Thomas Hughes

The U.S. Futures Are Up Slightly In Early Friday Trading

The U.S. futures are indicating a slightly higher open in early Friday trading after a week of big news. The Fed’s decision, trade talks, and economic data have all wreaked havoc on market sentiment. The FOMC lowered rates, as expected, but remained hawkish on the economy. The news should be taken as a double-dose of good news because it means lower rates and a strong economy yet the market did not cheer the announcement.

On the trade front, yesterday’s deputy level meeting was not expected to yield many results and yet has caused a stir in the market. Negotiators are said to have had positive interaction and Trump postponed some tariffs yet the outlook for a deal has soured. A close Trump advisor and China hawk says the President stands ready to raise tariffs if a deal isn’t reached soon while China says it isn’t as ready to deal as the U.S. would like to think. Bottom line is trade-relations will remain a point of uncertainty for the foreseeable future.

In stock news, shares of Apple are moving higher in early action as consumers wait in line for the release of the latest iPhone.  In other news, we are expecting a handful of speeches from FOMC members that may cause some volatility.

EU Markets Are Mixed, Trade Hopes And Brexit Woe

EU markets are mixed at midday on Friday. The French CAC is in the lead with a gain near 0.30% while the FTSE trails at 0.15% and the DAX is hugging break-even. Trade hopes are helping to support stocks although Brexit unease drags on sentiment. In Brexit news, markets are waiting on a ruling from the UK Supreme Court on whether Boris Johnson’s suspension of Parliament was legal or not. The ruling will come next week.

In stock news, shares of Alten are at the top of the rankings. The company reported solid first-half results and sparked an upgrade from SocGen. Shares of the stock are up nearly 10%. At the other end of the spectrum, shares of Signify are down about -7.0%. Phillips revealed it would sell the remainder of its stake.

Asia Mostly Higher, China Cuts Rates

Asian markets are mostly higher at the end of the day on Friday. The Korean Kospi is in the lead with a gain of 0.55%. Most others are up closer to 0.15% to 0.20%. The Hong Kong Hang Seng is the only index in the red and it is down -0.13%. In China, the PBOC cut the LPR rate allowing easier access to capital for the country’s most-trusted borrowers. In Japan, core consumer inflation came in at 0.5%, below expectations and at a 2-year low. This news helps ensure the BOJ will cut rates next month.

This article was originally posted on FX Empire

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