Traders calling bluff on conflict?

Traders calling bluff on conflict?

Mike van Dulken, head of Research at Accendo Markets commented to clients this afternoon:

“Equities are holding up well despite a supposed heightening of geopolitical risk. This after North Korea’s foreign minister stepped up threats to the US, giving fresh impetus to safe havens (bonds, gold, the yen and Swiss franc). A muted reaction among risk assets (equities, commodities), however, suggests traders are almost ignoring this war of words, potentially calling bluff on the potential for actual conflict. Fresh USD strength is helping the FTSE and DAX via a weaker EUR and GBP. The UK FTSE 100 is being buoyed by RDSb & BP (oil rally), GLEN (Copper bounce) and GSK (extending rebound) while drags include BATS (weaker GBP), LLOY (BoE warnings on consumer credit), WPP (broker downgrade), SHP, RB and AZN (profit-taking, rotation into GSK?). The German DAX outperforms thanks to gains for Merck KGaA (positive broker initiation), Vonovia (refinancing) and Linde outpacing standout loser Henkel (broker downgrade). The FTSE 100 continues to struggle with 7300 as a hurdle. The DAX 30 holds above 12600, in a bullish pattern back to 12900. Dow Jones Futures are above 22300, but remain in a falling channel. Gold has broken back above $1300. Revert to support?”

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Categories: News
Tags: alert, alerts

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