Trade war averted?

Trade war averted?

Equities are extending their rebound as investors breath a collective sigh of relief that a global trade war looks to be off the menu (China and US negotiating, several exemptions). This has seen USD rebound from lows, undoing some of the recently harmful GBP and EUR strength, helping both the FTSE and DAX to rally. The FTSE outperforms with gains of 2% while Wall St futures call for a positive open which would extend the gains onto which Europe has latched.

With almost all FTSE 100 components higher, the principal drivers of today’s outperformance (in terms of points contribution) are RDSB/BP (high oil price, weaker GBP), GSK (M&A), Miners (copper bounce, trade war relief), HSBC (trade war relief), AZN (GSK read-across, weaker GBP) and ULVR/BATS (weaker GBP), all adding at least 4pts a piece. The FTSE 100 has broken back above 7000. The DAX 30 is still trying to overcome 12000. Dow Jones Futures may have topped out at 24400. Gold has pulled back to rising support at $1348.”

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