Markets fell slightly on Monday after a heightened close to the weekend with Sunday night's terrorist attack in London and the widening rift between Qatar and other Gulf States as part of the fallout. The dollar rose as oil prices slid to $47.35 a barrel.
Edginess was witnessed globally across markets given a number of geo-political events on the near horizon including the European Central Bank meeting.
Sterling was on a wild ride and the FTSE dipped tentatively to -0.29% to 7525.76% following the latest atrocity and polls showing Prime Minister Theresa May ahead but with a narrowing lead.
US markets fell back slightly after last week's record gains with the NASDAQ down -0.16% to 6,295.68 and the S&P 500 -0.12 to 2,436.10.
- Dow 21,184.04 -0.10%
- S&P 500 2,436.10 -0.12%
- NASDAQ 6,295.68 -0.16%
- Russell 2000 1,396.45 -0.64%
- NYSE Composite 11,693.65 -0.21%
- Gold 1,281.60 -0.09%
- Oil WTI $47.35 -0.11%
- 10-year yield 2.18% +0.02%
Steely does it
The opening of the US market today reveals that last week's indice highs still underscore a stock market seemingly steeled to deal with a steady onslaught of disheartening political news.
Among decliners on the Dow were Apple (-0.98% $153.93) which unveiled its new wireless home speaker today and led the big board down after a ratings cut by analysts.
United Technologies also fell-0.93% to $120.98 and Boeing (-0.67% to $188.95).
Advancers were Walmart went up +0.80% to $80.26, Microsoft (+0.72% to $72.28) and Exxon Mobil (+0.78 $80.12). Notable was that Alphabet like Amazon also crossed the $1000 boundary in early trading.
Banks and tech gathered momentum on NASDAQ with 1st Constitution Bancorp up +3.17% to $17.90 and 8x8 semiconductor company (+0.70% to $14.30).
Experts see a continuing bull run given the fundamentals of strong corporate earnings, a robust economy and likely interest rate hikes however, geopolitical events could stem the tide and test investor resolve.
This morning isolating Qatar was hastened by Saudia Arabia, UAE, Bahrain and Egypt severing diplomatic ties with the country shutting off land, air and sea routes.
Qatar which is the largest exporter of liquified natural gas is accused of backing terrorism and meddling in the affairs of the four countries.
Qatar's state-sponsored news agency was accused of posting comments that praised Iran and mentioned Hamas as legitimate representatives of the Palestinians and is seen as the latest escalation in continuing tensions between Qatar and other Middle East countries.
Qatar denied the allegations and said its agency was victim of a hack. Oil price rose 1.6% early before falling back on the expectation that current tensions should not affect exports from the region.
The market can add to any jittery feelings with the latest terrorist attack this time in London and the upcoming general election in the UK on Thursday.
Athough polls see Theresa May in the lead, a win is by no means guaranteed as the lead between the two narrows as the election day looms. Inevstors will wait on tenterhooks to see if a Brexit policy is in place under the Tories.
Meanwhile, the European Central Bank is due to have its meeting in Estonia on Thursday the former FBI chief, James Comey, will deliver his testimony to Congress next week about President Trump and suspected Russian interference in the US election.