The European markets were rather timid on Wednesday – surprisingly, given the latest comments from Donald Trump.
The President said the US and China were in the ‘final throes’ of the ‘phase one’ negotiations, perhaps one of the ‘most important deals in trade ever’. However there was a potentially significant ‘but’, with Trump claiming Washington wants to ‘see it go well in Hong Kong’.
Instead of jumping at this latest positive soundbite, the market’s response was relatively measured. Understandable, given that these kind of comments have proven to be empty promises time and again over the last year.
Nevertheless, the FTSE 100 did add 25 points, taking it above 7430 and to levels last seen all the way back at the start of August. This price has tended to be the upper limit for the index since then, however, so it will be interesting to see whether it can mount a significant charge towards 7500, or whether the ongoing uncertainties regarding both the trade deal and the UK election will clip its wings.
Elsewhere the DAX and CAC were only up 0.1% apiece, keeping the former firmly in the middle of its recent 13200 to 13300 trading bracket and the latter at a 12-year high.
As for the pound, it was a mixed morning. Against the dollar it continued yesterday’s retreat, slipping 0.2% to slip under $1.285. Against the euro, however, it was flat at €1.167.
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