European bourses trade higher as China signals more European trade

The FTSE started the day barely higher, as did France’s CAC, with oil producers among the top gainers as oil prices moved higher overnight.

The FTSE started the day barely higher, as did France’s CAC, with oil producers among the top gainers as oil prices moved higher overnight. 

The US is looking to isolate Iran as much as possible and has asked all of its allies to stop their imports from the country by the beginning of November or face sanctions.

China getting ready for its next move in trade dispute

Markets could be in for a choppy session in both Europe and in the US as China seems to be gearing up for an escalation in the trade dispute with the US. 

However, this may not be all bad news for European stocks as China looks for stronger ties with other trading partners to replace the role of the US. China’s Prime Minister Li Keqiang said this week that China would increase its purchases from European companies, notably that it would buy more French farm produce and look at potential deals with aircraft maker Airbus.

British house prices show slow growth

House prices in the UK have risen at the slowest pace in five years in June and the coming months are not likely to bring much respite as overall UK economic growth remains slow and household budgets remain tight, according to mortgage lender Nationwide. 

House prices increased 2% in June compared with 2.4% in May with new buyers remaining reluctant and a limited number of properties becoming available. 

Nationwide’s latest numbers fit in with the comments made by the newly appointed Bank of England rate-setter Jonathan Haskel Tuesday that Britain was not ready for another rate increase while tweak wage growth remains and there is a substantial amount of slack in the labour market.  

The comments sent sterling spiraling down against the dollar on Tuesday and the currency continued to trade lower against both the dollar and the euro on Wednesday morning.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.