FTSE flies high on US-China deal
Fiona Cincotta December 16, 2019 9:22 PM
The FSTE is flying high, up 2.21% as the last full trading week of the year gets underway, boosted by UK election results and the progress on the Sino-US trade deal over the weekend.
The FSTE is flying high, up 2.21% as the last full trading week of the year gets underway, boosted by UK election results and the progress on the Sino-US trade deal over the weekend. The two sides reached a deal on phase one of the negotiations which will result in China doubling its imports of US agricultural products over the next two years and with the US cutting in half existing tariffs on Chinese imports. The dreaded tariff increase on additional Chinese goods scheduled for Sunday has been called off, boosting not only the FTSE but also other European gauges.
In London, British American Tobacco is leading the gainers with a 4.48% rise, followed closely by Bunzl and Glencore.
Sterling consolidates after last week’s gains
The pound has come off the highs it hit shortly after the UK election, partially because investors had already built in some amount of upside even before the results were fully confirmed. Still, sterling is now trading in a higher channel against the dollar and this morning’s slip looks like consolidation before potentially the next push higher.
The painfully drawn-out wranglings over Brexit have taken their toll on the UK economy, eroding both the services and manufacturing sector in December. Britain’s composite PMI shrunk to 48.5, with a number under 50 indicating an overall contraction.
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.