Market Brief: European Political Turmoil Drives Markets

See a summary of the top market themes and trends from today's US trading session!

  • FX: The US dollar was the weakest major currency in relatively quiet trade; the British pound and Swiss franc were the strongest.
  • Geopolitical developments in Europe stole the headlines today, with German Chancellor Angela Merkel and Boris Johnson continuing to debate the potential for changes with the Irish border as part of Brexit. Meanwhile, Italy’s Prime Minister Giuseppe Conte resigned, extending the country’s political turmoil.
  • Commodities: Gold and oil (WTI) both finished the day within 0.5% of yesterday’s closing levels.

  • US indices closed lower on the day as Treasury yields turned lower once again. This ended the three-day winning streak for major indices. Ongoing discussions about a possible payroll tax cut have failed to support investor sentiment, perhaps because they view such a policy as unlikely.
  • Consumer Discretionary (XLY) was the only sector to close higher on the day, while Financials (XLF) brought up the rear.
  • Stocks on the Move:
    • Retailer Kohl’s Corporation (KSS) dropped 7% despite reporting better-than-expected Q2 profits and revenues.
    • Medtronic (MDT) rose nearly 3% after beating on earnings and revenues, as well as raising full-year guidance.
    • Market darling Beyond Meat (BYND) gained 6.5% after the stock was upgraded by JPMorgan on the potential for growth in quick-service restaurants.


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit for the complete Risk Disclosure Statement.