European bourses trade higher as China signals more European trade
The FTSE started the day barely higher, as did France’s CAC, with oil producers among the top gainers as oil prices moved higher overnight. The US is looking to isolate Iran as much as possible and has asked all of its allies to stop their imports from the country by the beginning of November or face sanctions.
China getting ready for its next move in trade dispute
Markets could be in for a choppy session in both Europe and in the US as China seems to be gearing up for an escalation in the trade dispute with the US. However, this may not be all bad news for European stocks as China looks for stronger ties with other trading partners to replace the role of the US. China’s Prime Minister Li Keqiang said this week that China would increase its purchases from European companies, notably that it would buy more French farm produce and look at potential deals with aircraft maker Airbus (LON:0KVV).
British house prices show slow growth
House prices in the UK have risen at the slowest pace in five years in June and the coming months are not likely to bring much respite as overall UK economic growth remains slow and household budgets remain tight, according to mortgage lender Nationwide. House prices increased 2% in June compared with 2.4% in May with new buyers remaining reluctant and a limited number of properties becoming available. Nationwide’s latest numbers fit in with the comments made by the newly appointed Bank of England rate-setter Jonathan Haskel Tuesday that Britain was not ready for another rate increase while tweak wage growth remains and there is a substantial amount of slack in the labour market.
The comments sent sterling spiraling down against the dollar on Tuesday and the currency continued to trade lower against both the dollar and the euro on Wednesday morning.
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