Closing their ears to more Trump trade chatter, the markets continued their June jump, if with slightly less spring in their step.
In a call with CNBC, the President claimed that he was ready to slap tariffs on another $300 billion in Chinese imports if Xi Jinping doesn’t come to the table during the month’s G20 meeting in Osaka. Yet this threat didn’t really impact the Asian session, with the Shanghai Composite up nearly 2.6% and the Hang Seng Index rising 0.9%, clearing the way for a decent European open.
Climbing half a percent after the bell, the FTSE found itself above 7400 for the first time in almost 6 weeks, aided in large part by its mining sector. The DAX neared a 3-week peak of 12160 following a 0.4% increase, while the CAC inched closer to 5400 as it added 25 points.
With the Tory party confirming a rogue’s gallery of potential Prime Ministers, the pound remained pretty aimless. A 0.1% increase put cable at $1.27, while against the euro it was flat at a 5-month low of €1.1211 (in the last 6-ish weeks it is down almost 5%). Yesterday’s dire GDP data didn’t really move the pound – it was in the red before the figures were released – so it’ll be interesting to see whether the morning’s job report produces a bit more of a reaction. The main focus, as it has been for a while now, will be the wage growth reading, which is a worry for the pound given it is expected to fall from 3.2% to 2.9%.
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