Despite emergent doubts surrounding ‘phase one’ of the US-China trade deal, the European markets managed to climb higher after the bell.
Even though Saturday morning’s phone call was described as ‘constructive’, CNBC claimed on Monday that the mood in Beijing is ‘pessimistic’ according to a government source, with the shift coming after Trump denied he would be rolling back tariffs. And with the ongoing impeachment hearings, and then the election next year, the talks could be significantly dragged out as China stall for a potentially better agreement. Oh, and remember, there’s also the small issue of the fresh tariffs on Chinese goods scheduled for mid-December...
The blow of this report was eased, however, by the US government delaying its Huawei ban by another 3 month, a move that, if the European open is anything to go by, has been read as a sign that things are at least still cordial between the two superpowers.
Lifted by that move, the FTSE 100 added half a percent, an increase echoed by the DAX; the CAC, meanwhile, wasn’t too far behind with a 0.4% rise. As for the Dow Jones, the US index is looking to strike 28100 for the first time later today, the futures pointing to a 65 point increase.
Following Monday’s Tory-supporting, polls-driven gains, sterling held steady ahead of this evening’s first head-to-head between Boris Johnson and Jeremy Corbyn on ITV (LON:ITV). Cable is sitting unchanged at a one-month(ish) high of $1.2957, while against the euro a 0.1% rise sent the pound to a 6 and a half month high of €1.1713.
Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved.