It is a potentially huge week for the markets – not only because of the UK election, but due to the looming trade deadline this Sunday.
Not that you’d necessarily know that following Monday’s open. The markets were relatively timid at the start of the session, which is forgivable considering what is at stake.
The pound just about continued its pre-election rise, adding 0.2% against the dollar and 0.1% against the euro following a Survation poll giving the Tories a 14-point lead. Meagre movements, admittedly, but enough to send cable to a fresh 7-month peak of $1.317. Even better, it leaves sterling at a 31-month high against its single currency cousin, i.e. its best price since not long before the 2017 election.
Interestingly the European indices trickled into the red on Monday morning – the FTSE shed 0.3%, the DAX and CAC down 0.1% apiece – despite some general positive chatter regarding a trade deal.
Assistant Commerce Minister Ren Hongbin said that China wants to reach an agreement that ‘satisfies all sides as soon as possible’. However, given Sunday 15th December is set to see the US impose tariffs on another $156 billion in Chinese goods, ‘as soon as possible’ still might not be soon enough. Especially since, at present, there are no plans for face-to-face talks between Trump and Xi Jinping.
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