Risk Is Off At The Start Of The Week – Investing.com UK

SectorFinancial Markets

Risk is firmly off this morning with European stock markets slipping in early trade, led lower by the travel and energy sectors. US futures are weaker after Friday saw the first down week on Wall Street in four. Bank earnings were strong, but markets have already discounted an exceptionally strong reporting season.

Meanwhile concerns about variants, rising cases and declining vaccine efficacy are all conspiring to knock confidence. The slumped to a 2-month low in early trade as it retreated well south of 7,000. Treasury yields hover around 1.28% but are off the low hit earlier close to the 200-day SMA. I think we are already in a high summer lull for stock markets and we should be very mindful of the sell the news earnings season in the US leading the rest of the world lower.

Inflation was the big story last week and remains the big question mark hanging over markets. Consumer expectations have shot higher –...read more...