DAVY VIEW

Despite modest gains on the European bourses, the S&P 500 eased back from record highs on Tuesday (July 16th) amid concerns over US-China trade talks and a cautious mood ahead of the first round of Q2 earnings. Mixed jobs data in the UK magnified concern over a ‘no-deal’ Brexit and drove the pound to new two-year lows against the dollar and to 0.904 against the euro. The direction of the pound will be influenced by inflation data from the UK and Eurozone due later this morning.