Zucking up to Congress

Zucking up to Congress

Equities have found their mojo thanks to Chinese President Xi reiterating talk of reform and a more open economy and, rather than fan the flames of a potential trade war, promising to lower import tariffs. This has put investors at ease, suggesting this US-China trade spat may be nothing more than an elaborate negotiating charade of ego-boosting and grandstanding designed to appeal to protectionists and keep the international media and financial markets on their toes. The FTSE underperforms both the DAX and Dow due to GBP strength vs EUR and USD.

FTSE 100 higher thanks to Miners (metals higher on USD weakness and China optimism), Oil majors (reduced trade spat fears, Syria intervention?) and AZN/GSK/VOD (extending breakouts), with the only meaningful hindrance from ULVR/NG (profit taking, risk appetite bad for defensives) and SHP (profit taking after M&A jump). The FTSE 100’s rebound has been checked by twin resistance at 7255. The DAX 30 has broken out to test 12400. Dow Jones Futures have paused their rebound at 24300. Gold is struggling to get above $1335.”

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