Flat session expected as investors eye bigger events later in the week
It’s shaping up to be another flat session on Tuesday, with European stocks a mixed bag and US futures showing little directional bias.
Source – Thomson Reuters Eikon
The week is heavily loaded towards the back end, which is largely the reason why we’re seeing this kind of fence sitting from investors. Tomorrow alone we have the ECB meeting, Fed minutes and emergency EU Brexit summit, while later in the week earnings season kicks off and the UK may – probably not – leave the EU without a deal. It’s hardly surprising that investors aren’t getting too excited by a bunch of tier two or three economic data.
The broader macro stories continue to tick along in the background but we haven’t seen any major developments. There’s clearly a renewed desire to get the US/China trade deal over the line but little indication when that will actually happen. As ever, the timing isn’t as important as the deal itself, and market participants have certainly learned to be patient in recent years.
Once again, recent commentary has been quite positive but comes against the backdrop of slowing global growth, with the year long tit-for-tat having taken its toll. There’s probably an element of the global economy being late in a bull cycle so slower growth being understandable but this and other issues have clearly played a part. Now it’s just a question of how much damage can be undone by a deal being agreed.
For a look at all of today’s economic events, check out our economic calendar.
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