State of flux
Fiona Cincotta June 7, 2019 10:05 AM
The FTSE is trading higher Friday even though all major issues concerning the markets remain in a state of flux. It is Theresa May’s last day as the Tory leader and for the moment Boris Johnson looks like her most likely successor.
The FTSE is trading higher Friday even though all major issues concerning the markets remain in a state of flux. It is Theresa May’s last day as the Tory leader and for the moment Boris Johnson looks like her most likely successor. But it is far too early to call the winner. Although the markets assume a stronger pro-Brexit stance from the next Downing Street resident the big issue will be May’s successor’s stance on a no-deal Brexit.
The talks between the US and Mexico over potential import tariffs are hanging in the balance with the two sides still deep in negotiations ahead of a deadline Monday. No deal could result in a gradual increase on costs of imports from Mexico to up to 20%.
US jobless data to set tone for afternoon trading
US jobless data later today will focus investors’ minds particularly now that the the Fed seems to be undecided about its next rate move. The central bank left rates unchanged earlier this week a subtle change in tone from chairman Powell was taken as a signal that rates may be cut sooner. The dollar is weaker across the board ahead of the data release at 1.30 London time.
Brent trades higher on speculative push
Brent crude prices are on a roll, jumping 2.2% in early trade to over $63. Speculators have been pushing oil prices lower for days but have encountered resistance at around $60. Now that that level has held they are testing the upside of the current trade range.
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