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US Pre Market Open: Trade chatter and Italy budget woes makes for volatile conditions

Market Analysis /
30 Oct 2018

Volatility increased sharply on Wall Street going into the close last night after markets were spooked by reports that the Trump administration was preparing to levy tariffs on all imports from China. This was countered by the President proclaiming that he was confident a ‘great deal’ for trade would be struck with Beijing, although volatility has continued for index futures overnight and downside pressures are emerging yet again as we move towards the bell. As it stands, major indices are on course to post some gains at the open, although there’s a definite air of caution emerging, with a slew of downbeat numbers from Europe reigniting fears of a global economic slowdown.

Eurozone GDP prints for Q3 are being published today and so far, there has been little to cheer. Italy’s numbers fell short of expectations, serving up fresh warning shots over the viability of Rome’s contentious budget plans, whilst news from elsewhere in the currency bloc – notably sluggish German regional inflation data - has also generally disappointed. US consumer confidence shortly before the opening bell could inject further volatility for stocks – this is expected to post a modest contraction, but rising prices plus the prospect of ongoing rate hikes may well take an even bigger toll on American shoppers.

Ahead of the open we’re calling the DOW up 37 at 24480 and the S&P up 4 at 2645.

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