S&P 500, FTSE 100 Analysis and News
- S&P 500 | Back and Forth Politics Dictates Risk Sentiment
- FTSE 100 |EU-UK Summit in Focus for UK Assets
Cross Asset 1-Week and 2-Week Performance
Source: DailyFX, Refinitiv
S&P 500 | Back and Forth Politics Dictates Risk Sentiment
The back and forth state of US politics regarding another stimulus package continued to draw attention and will likely continue to dictate risk sentiment next week. While talks between Speaker Pelosi and Treasury Secretary Mnuchin will continue, the key focus is the stance from Senate Leader McConnell. That said, the path of least resistance remains higher in the absence of notable catalysts. What also has become apparent over the past week is that the blue wave trade is in full throttle. This has been particularly evident in the bond market with 30yrs yields above its 200DMA for the first time since Q1 2019, given that a blue wave means significant stimulus in the new year. On the topside, resistance is situated at 3490-3500.
| Change in | Longs | Shorts | OI |
| Daily | 3% | -4% | -2% |
| Weekly | -3% | 9% | 5% |
S&P 500 Price Chart: Daily Time Frame
Source: IG Charts
FTSE 100 | EU-UK Summit in Focus for UK Assets
As we near the de-facto deadline for a Brexit agreement (Oct 15th EU Summit), EU-UK trade negotiations will remain the dominant driver for UK assets. As it stands, fisheries is among the key stumbling blocks to making an agreement, however, given its small contribution to growth overall in the UK, it is unlikely to lead to a breakdown in talks and thus my base is still for a deal to be eventually made.
| Change in | Longs | Shorts | OI |
| Daily | -8% | 8% | -1% |
| Weekly | -18% | 43% | 3% |
FTSE 100 Price Chart: Daily Time Frame
Source: IG Charts
RESOURCES FOR TRADERS
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— Written by Justin McQueen, Market Analyst
Follow Justin on Twitter @JMcQueenFX
