- US’s relationship with its European allies is already at all-time low
- The Chinese GDP q/y data came in at 6.7%
- FTSE 100 in a consolidation phase
US futures are trading mix to kick-start a new week. The key focus for investors is the US and Russia’s meeting- the main event of the week. Last week at the NATO summit, there was a lot of drama, it kept the investors on the edge. A similar scenario is likely to play out this week as well. Russia and US meeting is important because US’s relationship with its European allies is already at all-time low and if Trump and Putin’s relation improves further, it would bring more friction between the US and the EU. If the situation does take this shape, the European markets and the US markets both can take a hit.
Moving away from this, traders are also under the influence of the feeble economic reading out of China. The Chinese GDP q/y data came in at 6.7% which was a little lower than the previous reading of 6.8%. Perhaps, the demons of the trade war have started their job. The slowing Chinese economy is not something which investors would appreciate at all.
As for the FTSE 100, we do not have any important economic data. Therefore, we are not expecting any data driven driven move. Brexit negotiations and any new headline on that would have the potential to move the markets. The overall price action has been very boring as the price is consolidating. Moreover, the FTSE 100 is struggling to find any direction as far as the moving averages goes.
