Why markets remain so unpredictable

European markets are playing catch up after closing at the depths of the Friday market meltdown on Michael Flynn concerns and embracing the weekend’s senate tax bill success. The pro-business tax cuts look set to boost US economic growth and have provided further impetus for US and global valuations.

Brexit negotiations have reached a crucial stage, with prospects for sterling and the UK economy all hinging on whether the UK can reach agreement on the outstanding issues in order to move on to free-trade talks and a transition deal.

However, recent days have confirmed just how difficult this task is. Just as one piece of the puzzle falls into place, the next ‘most-important’ issue raises its head.

Investors who were hoping that closer agreement on divorce terms would allow Britain to move on to the next stage have found the Irish Border issue a problem. EU citizen rights and the European Court of Justice are also critical. This domino effect makes it difficult to know if a resolution can be reached.

Whether you love it and have actively embraced the technology, or hate it and think that it makes tulips look positively sensible, the level of interest in bitcoin means it is important to have a view on cryptocurrencies.

The new bitcoin futures, launching in two weeks, have given the legitimacy of this asset a boost, defying sceptics and global regulators, all of whom are urging investor caution.

ETF providers are all trying to be first out of the gate to offer a digital currency option to mainstream investors. Even the Treasury note confirming they intend to regulate the digital currency is another step recognising its appeal. Like it or not, these new developments mean that bitcoin is here to stay.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

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