FTSE buoyed by Brexit extension, China trade talks
Fiona Cincotta April 5, 2019 11:52 AM
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.
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.
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