Trade relief boosts European markets
Fiona Cincotta June 10, 2019 10:37 AM
A relief in trade tensions is helping European stocks higher after the US and Mexico reached a deal on immigration and decided to postpone tariffs on Mexican imports indefinitely.
A relief in trade tensions is helping European stocks higher after the US and Mexico reached a deal on immigration and decided to postpone tariffs on Mexican imports indefinitely. On the downside, China’s data showing that imports have dropped the most in the last three years will be bad news for major European exporters to China, notably German car makers, luxury goods brands and machinery producers.
On the FTSE investors favoured Just Eat shares as the company’s had price dropped so much last week that it became oversold. On the low end of the index plumbing products distributor Ferguson declined the most after its revenues missed expectations.
The vacuum in the leadership of the Tory party is continuing to erode the pound which has weakened to $1.2691 this morning. More bad news came from domestic economic data showing a 0.4% decline in April caused by car manufacturing closures courtesy of Brexit.
Likely production cut extension boosts oil price
Activity in the oil market perked up over the weekend with prices breaking above $64 as Saudi Arabia signaled that OPEC was likely to extend its plans to cut production. The discussion to keep the cuts in place or not are back on the table ahead of OPEC's next meeting in June and it seems that only Russia remains undecided on whether or not to keep cuts in place. This morning Brent crude is moving up again, after a brief dip during Asian trading.