Political risks weigh on global markets ahead of oil data
LONDON — A raft of political risks kept a lid on global stock markets on Wednesday, a day after the Dow Jones industrial average struck a new milestone.
KEEPING SCORE: In Europe, the FTSE 100 index of leading British shares was down 0.1 per cent at 7,176 while Germany’s DAX fell 0.1 per cent to 11,539. The CAC 40 in France was 0.3 per cent higher at 4,768. U.S. stocks were poised for a modestly lower opening, with Dow futures and the broader S&P 500 futures down 0.1 per cent.
POLITICAL RISKS: Since the immediate aftermath of Donald Trump’s victory in last year’s U.S. presidential election, stocks have been largely in the ascendant, particularly in the U.S., where the Dow breached 20,000 for the first time. On Tuesday, it struck a new intra-day high before giving up some of those gains to close at 20,090.29. However, there are signs that investors are beginning to fret over a series of political risks not only related to Trump. Worries over Greece’s bailout, Britain’s imminent triggering of its two-year exit process from the European Union and France’s upcoming presidential election are becoming concerns.
ANALYST TAKE: “Political risk remains a major concern for traders, with Donald Trump’s unpredictability, the Brexit debate in parliament and the French election all creating a rather unsettling environment for traders,” said Craig Erlam, senior market analyst at OANDA.