A fresh round of Sino-US talks is boosting Asian and European markets this morning, raising hopes that a resolution to the ongoing dispute and the removal of tariffs that are in place will go some way to slow down the gradual weakening of the two countries’ economies. Positive comments from US negotiators leaving Beijing helped global stock markets but a resolution is not yet in hand and instead talks will continue in Washington next week.
Miners rally despite force majeure
Miners were among the main beneficiaries of the trade talks as they depend on the reestablishment of tariff-free trade flows in and out of China. Glencore, Rio Tinto and Anglo American rallied more than 2% this morning, leading the FTSE risers’ table, and Rio Tinto managed to avoid being knocked down for declaring force majeure on some of its iron ore contracts.
Pound slides on faux Brexit date
On the day that Britain was meant to be leaving the EU, UK lawmakers are due to vote on the withdrawal agreement that will set out the terms of Brexit. The contentious agreement has drawn criticism for being a 'blindfold Brexit'. The pound is mostly keeping calm and carrying on, only marginally weaker against the dollar and the euro as traders try and just get through the next few days that will eventually have to lead to a Brexit resolution of some kind.
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