One step forward, two steps back. It appears the wall of worry is just too big for the markets to climb right now without the odd setback,” says AJ Bell investment director Russ Mould.
“Bricks in that wall include the coronavirus second wave, an end to the Brexit transition period which could see an effective border for hauliers in Kent, uncertainty over the economic outlook thanks to Covid-19 and escalating political tensions in the US.
“Donald Trump’s continuing reluctance to confirm he would accept a loss in the Presidential elections in little more than a month carries the threat of taking the country into unprecedented and potentially dangerous territory. Though this may be little more than rhetoric and Trump could triumph anyway.
“The bitter campaign for the White House is also preventing the US from agreeing a fiscal stimulus package – leading to growing grumbles from the US Federal Reserve and it was little surprise to see US stocks fall against this backdrop.”