Deadline Day in Italy and Brexit Optimism - The Anchor Points in Trading Today!

Deadline Day in Italy

Today is the last day on which Italian President Sergio Mattarella will give a final chance to Five Stars and the Democratic Party to reach an agreement to form a government. At present, the agreement indicates that there will be no agreement, and this in turn will throw the country into uncertainty and have a negative impact on the euro and Italian stocks. Today, we expect large fluctuations in Italian bonds too, which will give a clear idea of ​​how investors evaluate the situation in the country.

Brexit Optimism

It seems that Boris Johnson's ambition to move the UK out of the EU, with or without a deal, has a positive effect on the GBP. Despite opposition plans to block Brexit without a deal we witnessed earlier this week, the GBP continues to climb. The positive foundation for now is that the EU and the UK are ready for new negotiations and compromises on Brexit, and given the lack of important news today, I expect the upward momentum of the GBP to continue.

Is it time to buy stocks?

The question "Is it time to buy again" is back on the agenda, at least according to J.P. Morgan Chase traders. The bank estimates that the time of purchase is approaching and it will be in September. However, there remains the risk of negotiations between the US and China, which, according to the bank, will eventually develop in a positive direction - elections are coming ...

Source: Bloomberg

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