After spending much of the day in positive territory, all the major US markets headed into the red in late trading as trade fears continue to dominate. From a month ago with a deal looking likely, we are once again at a standstill with no end in sight.
The DOW fell 237 points yesterday and both the Nikkei225 and Hang Seng have followed suit losing 253 and 110 points respectively at this point. Results in the European elections and a poor showing from both major UK parties continue to heap pressure on sterling. Whilst I still maintain that the longer term outlook is positive for sterling the short term outlook is less sure with volatility the only guarantee.
DAX futures will gap a little lower at the open this morning and I will be looking to buy futures at 11,920