Given the big events on the calendar this week, it’s not surprising that today’s session has seen little movement across most markets, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
“Today marks a lull before the calendar heats up with earnings and central bank decisions. As a result, we have seen quiet trading on both sides of the Atlantic. Equity markets have managed to hold on to their recent gains throughout January, but with so much in the calendar between now and Friday, investors are likely to endure a more volatile period.”
“Attacks on US soldiers in Jordan seemed to hint that a widening of the conflict in the Middle East was at hand, but today has actually seen a sharp drop in crude prices. Both Brent and WTI are down over 2%, as the lack of any major US response so far and growing worries about China’s economy resulted in a push to the downside. Crude has rallied from the December lows, but still-weak global demand makes further gains from here uncertain at best.”
