[ad_1]
Despite a difficult start to the week it feels like the market is still in wait-and-see mode over whether there will be a full-blown trade war between the US and Europe.
Since the market close last Friday, the French and German flagship indices are down 2.5% and 2.3%, partly thanks to French luxury goods firms’ and German carmakers’ substantial exposure to the American market. The FTSE 100 is down a little more than 1%, with its own luxury brand Burberry also on the back foot.
On the market Richter scale this is little more than a mild tremor – for now. However, the stakes feel high as world leaders, including Donald Trump, prepare to meet at the World Economic Forum in Davos.
AJ Bell investment director Russ Mould said: “Investors will be hoping for some sort of de-escalation deal on Greenland which removes the risk of a break-up or at least serious rupture in the Nato alliance. If the crisis deepens it is unlikely to spell good news for global equities.
“US futures were pointing to losses when Wall Street resumes trading after Martin Luther King Day. Nasdaq looks set to chalk up the biggest declines amid concern about possible retaliatory action from Europe against America’s big tech contingent.
“Heightened tensions continue to push precious metals prices higher and gold bugs will be eyeing the $5,000 per ounce mark after it moved through $4,720.”
[ad_2]
Source link
