Morning market update from Interactive Investor

European equities are losing further ground after a turbulent session in Asia as investors continue the move into the safe haven assets of bonds, gold and the Japanese Yen.  With the major risks remaining on the downside, even the hardiest of investors are currently struggling to find any compelling reason to invest in equities.

However, with global bond yields, including the traditionally preferred German Bund and Japanese JGB, dropping to record lows, the potential downside risks in fixed income markets could be just as significant, leaving investors with limited places to hide.

Central Banks take central stage this week as policy makers decide on interest rates and stimulus. Although both the Federal Reserve and the Bank of Japan are likely to refrain from making any affirmative decisions this week, the meetings and policy statements may well provide some insight as to the likely timing of any future rate rises in the US and an expansion of monetary stimulus in Japan.

The oil market has benefited over the past few months on reduced supply concerns, but with Iran looking to extend production and supply in the US also starting to show signs of recovery, oil prices are starting to find themselves under pressure once more.

At 8.20am, the most actively traded blue chip stocks by Interactive Investor clients were as follows: Lloyds, Tesco and Glencore.

At 8.20am the most active small/mid caps were: Highlands Natural Resources, Cloudtag and Futura Medical.

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.