Global trade worries are still the major topic of concern for the stock markets. Whilst strong economic data out of China last week suggested that there was no need to worry, a longer examination of those numbers would suggest that there may have been a certain amount of window dressing.
The Nikkei225 has fallen 423 points this morning whilst the Hang Seng is lower by 390 points, this comes after the DOW rallied 287 points on Friday. Very early morning opening calls for the FTSE and DAX showed a positive bias but these quickly disappeared and turned negative, the DAX by as much as 60 points at the opening bell.
There are four major issues affecting the market at the beginning of this week:
* Global trade worries
* Possible slowdown in the Chines Economy
* Higher US borrowing costs
* Heightened tensions between Riyadh and the West
The FTSE has slumped over 10% since May of this year, falling from a high of 7877 to below 7000 currently. Several analysts are suggesting that it is a buy at these levels but as the weekend saw no breakthrough in the BREXIT talks, waiting appears the best policy. Sterling took a hit on the lack of breakthrough and has traded all the way back towards 1.3100.
The European Summit on Wednesday may confirm the next direction for these markets.