The European markets were granted a reprieve on Friday, the Dow Jones’ last minute retreat from the cliff edge on Thursday night paving the way for a greener end to the week.
Though Beijing are very much displeased with the arrest of Huawei (SZ:002502) exec Meng Wanzhou – China’s media labelled her detention as ‘despicable’ – the fact the country nevertheless announced it was ‘immediately’ applying the trade truce measures agreed with the US appears to have helped reassure the markets that the relationship between the two superpowers hasn’t yet reverted back to its warmongering worst.
Granted, that announcement came on Thursday morning, so it perhaps isn’t directly linked to the rebound. However, now that the dust has settled somewhat on Wanzhou’s arrest, investors may be taking a slightly more measured approach to the whole issue.
Only slight more measured, mind. In the week’s latest triple-digit move, the FTSE leapt 100 points, lifting back to 6780 as it tried to put some distance between it and Thursday’s 2 year lows. The DAX and CAC did the same, climbing 1% and 1.5% respectively, attempting to catch their breath after a few days of market madness.
Ahead of this afternoon’s non-farm jobs report – a release that could add some Fed intrigue to the trade war dominance – the pound slipped 0.2% against both the dollar and the euro, as next Tuesday’s Brexit vote grows ever closer.
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