The first full week of November began as so many months have in the last few years – with investors training all their attention on the trade situation between the US and China.
The latest Trump crony to come out making positive noise about ‘phase one’ of the trade talks was Wilbur Ross, the US commerce secretary. Though non-committal about whether or not the deal would be signed this month, as well as where it would actually be signed after the Apec summit in Chile was cancelled, he stated that talks are in ‘good shape’ and told the Financial Times that the US are ‘quite optimistic’ the remaining issues can be ‘closed out’. He also claimed that licenses for US firms to sell components to Huawei would be coming ‘very shortly’.
So nothing particularly tangible just yet. However, these promises for the near future were enough to paint Europe green on Monday. The FTSE jumped 45 points, tickling 7330 as it did. Even better where the DAX and CAC; both rising 0.7%, the German index hit a near 17-month peak of 13040, while its French cousin teased 5800 for the first time in 12 years. Looking ahead and the Dow Jones is heading for 27400 courtesy of a 80 point increase.
With the UK settling into election season, the pound was muted at the session’s start. After steadily climbing for much of last week, cementing an astounding October, cable has opened November in a vegetative state, holding at $1.2394. Against the euro sterling has been stuck for far longer, spending the last fortnight or so repeatedly butting its head against €1.16 – today was no different.
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