Market News & Analysis

Top Story

FTSE buoyed by Brexit extension, China trade talks

The FTSE is back on a rising streak Friday boosted by a possibility of a longer Brexit extension and the China-US trade deal now seemingly within reach. However, never one to give ground before negotiations are over, President Trump said that he will not set a date for a summit with his Chinese counterpart until an actual agreement has been reached. The China trade deal spells good news for miners, machine manufacturers and metal traders, all of which are trading higher in London this morning. 

Sterling is marginally higher against the dollar and the euro after the EU signaled that the UK could get a 12-month extension on Brexit but the currency could face more volatility during the day as domestic political events unfold. So far the UK has only requested a delay until 30 June. 

Trump plans new Fed nominee 

President Trump, who has been openly critical of the Fed’s hawkish rate policy last year, plans to nominate Republican candidate Herman Cain who has no previous experience in monetary policy to the Fed board. If Cain does get a seat alongside four other candidates already there on Trump’s recommendation the Fed’s policy could become more dovish than is appropriate for the state of the US economy. 

US bond yields have steadily climbed over the last two weeks but now the market is taking a more cautious view, particularly on longer term yields. The dollar has slipped against a number of majors and is only trading higher against the yen.
Join our live webinars for the latest analysis and trading ideas. Register now

From time to time, GAIN Capital Limited’s (“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.