Equities tumble as risk sentiment shifts
Equities start the week on the back foot as fears of a US slowdown kick in with some analysts talking about a pending recession. There ware also concerns after the recent PMI data on both sides of the Atlantic. The Nikkei 225 was the worst affected falling 3.01%, the ASX lost 1.11% and the Shanghai Comp. dropped 1.97%.
In terms of Brexit, this is a big week for the Prime Minister. Media reports have started to flood in suggesting that the Tories may try to oust the PM with some suggestions of Michael Gove stepping in. It is this week that the PM is due to bring her deal back to parliament for the 3rd time and if we get another rejection the pressure will be on.
In commodities markets, gold has pushed higher despite a stronger USD close on Friday. This and the fall in fixed income yields are showing us the market is looking to flee to safety. This morning the yellow metal trades 0.30% higher at $1317/oz.
As global risk sentiment shifts lower copper has taken a small hit too. The industrial metal trades 0.30% lower this morning, along with oil as spot WTI falls 0.50%.
Today we will be looking out for German ifo data, any Brexit developments and comments from ECB's Coeure, Lautenschlager and Fed's Harker.