FTSE propped up by Trump's trade olive branch
Fiona Cincotta May 24, 2019 10:49 AM
President Trump’s softening stance towards Huawei, his olive branch to China, helped global stock markets turn the corner overnight from a 1.1% drop in the DJIA at Thursday’s close to a rally in DJIA futures this morning.
President Trump’s softening stance towards Huawei, his olive branch to China, helped global stock markets turn the corner overnight from a 1.1% drop in the DJIA at Thursday’s close to a rally in DJIA futures this morning. The FTSE is also benefiting from the turnaround with companies from different sectors trading higher but most of the volume is flowing through bank and insurance shares and Vodafone.
Sterling firms as politics dominates
European elections are over in Britain but will go on for another three days in Europe. The final results due to be released on Sunday will also shed some clarity on where British voters really stand on Brexit and will be a major pointer for the next incumbent of 10 Downing Street. Theresa May is due to set the date for her departure later today and once she does the ensuing leadership battle will infuse currency markets with volatility. Sterling is 0.15% higher against the dollar, trading in a relatively narrow channel in the calm before the storm.
Oil drops below $70
An expected rise in US crude stocks is pulling oil prices lower despite the ongoing global tightness in the market caused by sanctions on Venezuela and Iran and China demand concerns. But although the US crude stocks reflect a US-specific situation where vigorous domestic supply caused prices to slip to $58, Brent Crude also followed suit and has lost more than $2 since the stock data was released.
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