A day after US and China trade tensions took another step to full hostility the markets managed to regroup and start afresh. The FTSE opened on a stronger note, up 0.7% Asian markets also traded higher and key European bourses started the day on an upward trajectory.
The Sino-US conflict is not likely to fade into the background any time soon but now that some strong blows have been exchanged it will take some time for the effects and the real cost to be felt by businesses.
Brexit vote to bring more chaos to the Commons
Meanwhile the UK Prime Minister is facing a fresh Brexit showdown as the MPs are due to vote on parliament’s involvement in Britain's exit from the European Union after the Lords voted for MPs to have a meaningful say on the final deal.
Last week’s discussion descended into chaos with Scottish MPs walking out in protest and almost 100 Labour MPs going directly against Jeremy Corbyn. This kind of discord at the top is continuing to leave business without clarity on any of the key aspects in their dealings with Europe and will continue to affect both UK company shares and the pound.
CBI to provide the last piece of puzzle before the BoE meeting
The CBI will publish its monthly industrial trends survey later today, the last piece of the puzzle needed by the Bank of England for its UK interest rates deliberations tomorrow.
The last CBI survey showed that UK manufacturing remained flat for about three months and if there is a similar reading tomorrow it will reinforce other recent data showing that the UK economy is not moving forward very fast. This combined with the tensions in the Commons over Brexit negotiations could put the bank off from going ahead with a planned rate increase later this summer.
Disclaimer: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient.
Any references to historical price movements or levels is informational based on our analysis and we do not represent or warrant that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, the author does not guarantee its accuracy or completeness, nor does the author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.