Donald Trump’s claim on Sunday that he ‘will always be friends, no matter what happens’ with President Xi, however hilarious, has proved to be something of a salve for the markets, allowing Europe to continue the upwards momentum that managed to appear last week despite the insane swings in trading.
The FTSE teased a 4 week high after the bell, rising 0.3% to lurk just under 7200. The eurozone indices were slightly more robust in their moves this Monday; the DAX jumped 100 points, just about crossing 12300 in the process to approach a 3 week peak, while the CAC was up 0.5% and back above 5250.
As for the forex markets, the pound managed to push above $1.41 against the dollar, having briefly fallen under $1.40 on Friday. The euro, on the other hand, remained unable to overturn its recent losing streak against the greenback, falling a further 0.2% following the release of some weaker than forecast German trade data. The single currency is also struggling against sterling, with the pound knocking on the door of €1.15 after nudging up by 0.2%.
Monday’s not the most interesting day data-wise – to be honest, beyond Wednesday’s US inflation and Fed meeting minutes the whole week is a bit of a bust – meaning the markets may be left at the mercy of Trump’s itchy Twitter trigger finger, especially any further thoughts on his touching relationship with Xi.
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