FTSE higher ahead of China deal, earnings

European markets are trading higher despite a dip in Asian markets with local investors pegging their hopes on a recovery in trade following the signing of the US-China trade deal.

European markets are trading higher despite a dip in Asian markets with local investors pegging their hopes on a recovery in trade following the signing of the US-China trade deal. There is no official date set yet for the signing but with the Chinese top trade envoy currently on his way to the US the two sides are expected to put pen to paper before the end of this week.

On the FTSE side BAE Systems was the biggest gainer despite the Iran tensions going on the back burner for the moment, particularly after Iran admitted that it mistakenly shot down a Ukrainian plane leaving the country.

Property developers and house builders are on the rise ahead of earnings results from Taylor Wimpey Tuesday and Persimmon on Wednesday. 

Pound drops below $1.30

The UK economy is still digesting its Brexit apprehension and is barely showing signs of life with growth of 0.1% in the three months to November. Although there have been a few positive economic numbers over the last few weeks, including slightly higher housing prices, the glacial pace of economic growth is causing some concern for the Bank of England.

Over the weekend two of its  Monetary Policy Committee members indicated a shift in the Bank’s view saying that they are considering voting for a rate cut at the Bank’s next meeting. The pound dipped 0.68%, sliding below the $1.3 level for the first time since the election.

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