Following the build-up of last week’s Interest rates, the US turned their attention to the first U.S presidential debate which began at 02:00 GMT this morning. Investors will dissect every word spoken by the two candidate – Hillary Clinton and Donald Trump. US indices experienced some support in the run up and during the debate and have held on to those gains.
Germany bank Deutsch Bank opened the week with big losses, closing at 10.51, wiping over -7.4% off its the market value following updated reports that German chancellor Angela Merkel will not offer any additional help to the ailing bank. Triggering widely negative responses throughout the EU markets, seeing red in most sectors. Will this be an early indicator of a deeper underlying issue for the EU? As a result yesterday the CAC closed at 4395, -1.60%, FTSE100 fell -0.977%, FTSE MIB dropped -1.52%. This morning has seen a bounce, following on from the strength seen in US Markets, but yesterday’s losses have not fully been regained.
While the attention has been placed on EU and US markets, Talks in Algeria between OPEC and its non-member countries has continued to try to reach an agreement to help stabalise the fluctuating oil markets. While the talks have been positive, no actions has been made to date leaving investors much in the dark. If an agreement can be made, then the markets will follow a simple Supply vs Demand curve similar to yesterday – Crude WTI now trading just below $46 a barrel, well off its lows.