US markets cautious ahead of Fed meeting

Heading into the close the FTSE 100 is down five points at 6803 as the Salmond shakedown continues.

A Wall Street sign
Source: Bloomberg

Investors wary of UK stocks

We are now in the final stretch of the Scottish referendum and the pressure remains on RBS and Lloyds. If there is one thing the markets don’t like it is uncertainty, and nothing could be more uncertain than the outcome of the referendum. As the future of the UK hangs in the balance international traders are staying clear of British stocks as the state may have one less nation by the end of the week.

IG's binary is indicating a 21% change in the referendum, with voters favouring independence. Over the past week the ‘No’ vote took the lead in the polls but our binary remains very much divided on the outcome. 

US traders treading lightly

In the US, the Dow Jones is up seven points at 16,995 and traders are treading lightly ahead of the Fed meeting on Wednesday. QE is no longer of interest as many will be looking for signs to when rates will rise.

We are offering a binary bet on the Alibaba IPO, and our grey market suggests a market capitalisation of $215 billion. The Chinese e-commerce giant will float on the NYSE on Friday and we are only days away from a possible record flotation. 

Chinese data sends copper lower

The price of copper has been crushed again after China’s industrial output dropped. Traders are now starting to wonder if China will be able to achieve its full-year growth target? Falling house prices and manufacturing levels, coupled with less liquid capital pools are weighing on the Asian giant.

Gold is trading higher today but there is no reason to jump for joy after the dreadful run the metal has had since the start of the month. 

GBP/USD still heading lower

Sterling continues to slide as the weight of the Scottish question clips away at the pound's recent comeback. The polls continue to show a narrow lead for the ‘Better Together’ campaign, but traders are holding out until a ‘No’ vote is secured before touching the pound again.

The euro may be out of the spotlight but the declines continue. The single currency has made no attempt to gain back the ground it lost to the ECB rate cut at the start of the month.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

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