Thursday’s been a mess.
China sent the markets spiraling once again as it said that it is planning to retaliate against the latest round of tariffs set to be imposed by the US. And then, in a move that made investors feel a bit dizzy, Beijing claimed it was hoping to meet Washington ‘half-way’ regarding a trade deal. This was somewhat undermined later by Trump, who tweeted that any deal would have to be on ‘our terms.’
The markets tied themselves in knots trying to keep up with these developments, frantically swinging back and forth as investors strained to ascertain where exactly the hostilities now stand. It’s the kind of session that’s seen the Dow Jones alternately up 250 points and down 300, eventually settling for a far blander 0.3% increase. In Europe, meanwhile, the CAC eked out 0.1% but with the DAX dipping 30 or so points.
Carving its own narrative was the FTSE, which dove 0.9% to strike its worst price in more than half a year. The source of the index’s consternation was sterling. In a move that is begging to be undermined by some hard Brexit soundbites, the pound surged 0.5% against the dollar, and 0.8% against the pound as rebel Tories and Jeremy Corbyn agreed to meet to try and hash out a plan to deny Boris Johnson his much sought after no-deal Halloween. The cable is now back at a one-week peak of $1.212, while against the euro sterling is at a 10-day high.
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