Divider in Chief

Divider in Chief

Henry Croft, Research Analyst at Accendo Markets, commented to clients this morning:

Global equity markets are in the red this morning as a trifecta of bearish factors irk markets on ex-div Thursday. Investors continue to analyse the fallout from the disbanding of President Trump’s business councils, seen as a key link between corporate America and the White House. At best, it could remove pressures on CEOs to defend the President’s views in order to focus on running profitable businesses; at worst it could slow the administration’s ability to enact key economic policies such as tax reform and sector deregulation.

Less hawkish Fed minutes compound woes from the US, with disagreement between policymakers over when to begin its balance sheet trimming hurting key systemic banks across the world. Finally, Crude Oil weakness stemming from the US dollar rebound is hurting the UK’s heavyweight Oil sector.

Weighing on the FTSE are Banks, Oilers, ex-divs (BATS, RB., LGEN) and Kingfisher (results). Offering some positives are Pharmaceuticals (USD strength), Gold miners (after Gold rally yesterday) and Johnson Matthey (Bernstein upgrade). Germany’s DAX is approaching breakeven as RWE powers to a 2-year high, offsetting losses for global player Deutsche Bank.

The FTSE 100 is narrowing within its key 7405-7425 range. The DAX 30 is rallying from intersecting falling highs support at 12200. Dow Jones Futures remain stuck between 22005-22040. Gold has fallen from $1290 resistance after yesterday’s rally.”

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