Dow Relatively Unruffled By Huawei Probe; Sterling Starts To Eye Brexit Plan B

Not a lot changed with the US open. The markets remained lightly concerned about the Huawei situation, while the pound was tentatively positive about the week’s political developments.

The severity of Thursday’s losses, initially inspired by the fear that the announced US probe into Huawei would disrupt the trade talks between the country and China, seem to have been limited by the confirmation that Vice Premier Liu He will be coming to Washington for further discussions at the end of January.

This meant the Dow Jones only dipped 40 or so points after the bell, leaving it not too far away from Wednesday’s one month high. The Dow’s relatively decent start allowed the European indices to further ease their own losses; the FTSE is now down just 0.2%, with the DAX flat at 10900.

Staking its hopes on a ‘no deal’ Brexit being less of a potentiality than it was at the start of the week, the pound continued to rise, pushing 0.3% higher against the dollar and 0.4% against the euro. After consecutive evenings of fraught Brexit drama, attention now seems to have shifted to Monday, when Theresa May has to present her Plan B to Parliament, and then to January 29th, when said plan will be voted on.

Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.

In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved.

Original post