Geopolitics Weighs on Markets After Spain Attack

An aversion to risk was evident in financial markets Friday after the attacks in Spain. Stock markets around the world were under pressure while traditional safe haven assets, such as gold, were in demand.KEEPING SCORE: In Europe, the FTSE 100 index of leading British shares was down 1 percent at 7,316 while France’s CAC 40 fell 1.1 percent to 5,089. Germany’s DAX was 0.5 percent lower at 12,137. Wall Street was poised for a subdued opening with Dow futures and the broader S&P 500 futures down 0.1 percent.BARCELONA ATTACK: The source of the risk aversion gripping markets particularly in Europe was the attacks in Spain. On Friday, police shot and killed five people wearing fake bomb belts who staged a deadly car attack in Cambrils, a seaside resort in Spain’s Catalonia region, just hours after a van plowed into pedestrians on a busy Barcelona promenade. Spanish authorities said the back-to-back vehicle attacks — as well as an explosion earlier this week in a house elsewhere in Catalonia — were related and the work of a large terrorist group. In total, 14 people were killed in the attacks, 13 in Barcelona and one in Cambrils.TRUMP TROUBLE: More uncertainty over developments in the White House also added to investor pessimism. President Donald Trump abandoned his plans to form an infrastructure advisory council, a day after the administration said it would close down two other advisory councils made up primarily of business leaders. The White House was also forced to issue a statement dispelling swirling rumors that Gary Cohn, head of the National Economic Council, was stepping down, saying they were “100 percent false.”ANALYST TAKE: “We’re seeing risk aversion in the markets again on Friday, with the possibility of a self-inflicted crisis within Donald Trump’s White House and another terror attack, this time in Barcelona, weighing on risk appetite,” said Craig Erlam, senior market analyst at OANDA.

Source: Geopolitical uncertainty stalks markets after Spain attacks – Breitbart

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.