Volatility on the rise, markets trending downward
There is an increase in volatility within the markets, leading to a downward trend.
(Video Transcript)
UK retail sales
The UK's retail sales have been impacted by heavy rainfall in July, resulting in a slowdown in growth. Similarly, Chinese trade is also down, with worries about both exports and imports as the economy continues to weaken.
Another significant development is that Beyond Meat, a popular plant-based meat company, has lowered its expectations due to challenges in finding markets. This news has caused a drop in the company's stock price.
Volatility
Additionally, there is an increase in volatility within the markets, leading to a downward trend. The mining sector, specifically Glencore, is expected to have a tough start in the trading session today due to poor financial results for the first half of the year.
The European market is also experiencing a decline, mainly because of concerns surrounding the German economy. Furthermore, Chinese exports and imports being down have had a negative impact on the Hang Seng stock index.
However, there is some positive news for the US markets as the Dow Industrials and Nasdaq have both seen gains. On the other hand, sterling has shown a decrease after two consecutive days of gains.
In terms of online sales, overall, there is a decline, but some categories such as furniture and health are still performing well. It is important to note that the US inflation data, expected to be released on Thursday, will heavily influence the markets.
Forex
As for currency exchange rates, the dollar is currently hovering just above a line of support before the CPI data is released on Thursday.
Meanwhile, the euro/dollar exchange rate is recovering and is above the 110 level. Moreover, the dollar/yen exchange rate is up against a weakened yen.
In conclusion, there are growing concerns about the direction of the economy, particularly with regards to China and Germany. Factors such as retail sales, trade, and corporate earnings are contributing to increased market volatility. This is reflected in the current trends in oil prices and gold losses.
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.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market.
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
