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Global Markets Enter Risk-Off Mode Ahead of UK Election, ECB Meeting & James Comey Testimony

Published June 6, 2017
  • Global stocks moved lower this morning as investors shifted to a risk-off sentiment
  • Asian shares ended mostly lower, European stocks fell to a one week low, and Wall Street stock futures are showing a decline as markets open in North America
  • Former FBI Director James Comey is set to testify to US congress later today; US President Donald Trump has already waived his right to use executive privilege to prevent Comey from speaking today
  • The US Dollar Index has slumped to seven month lows against a major basket of currencies this morning as markets prepare for uncertainty and potential fallout from Comey’s testimony; safe-haven assets such as gold, the Japanese yen, and US 10-year treasuries have all seen movement as investors look for certainty
  • The UK general election and European Central Bank meeting on Thursday have investors hedging their positions; Theresa May’s lead over her rival Jeremy Corbyn has narrowed to just one point
  • Oil prices continue to move lower this morning in reaction to the ongoing diplomatic rift between several Arab states and Qatar; prices for Brent Crude have dropped a staggering 8% since May 25 when OPEC had hoped to raise oil prices by extending their supply cut to March 2018
  • The United Arab Emirates is already blocking Qatari ships from docking in one of UAE’s key ports; market participants are increasingly questioning OPEC’s solidarity in this cut due to this surprise rift