Market News & Analysis
Trade threats and Huawei hit FTSE
Fiona Cincotta May 31, 2019 10:14 AM
European shares have yet to recover from the latest Mexico threat which has caused the FTSE to lose 0.95% and the DAX 1.54%. Unless a miraculous political U-turn materializes later in the day, which is not completely impossible given the US President’s track record, more stock declines are in store when Wall Street opens for trade. The threat to Mexico comes as US–China trade relations are already deteriorating with markets waiting for China's next response.
Sterling’s two steps forward, two steps back
Sterling has managed to recover from its dip yesterday caused by reports that Germany would veto an extension to the October 31 Brexit deadline unless the UK makes some major changes such as a general election or a second referendum. The recovery in sterling/dollar has more to do with the dollar’s weakness in the wake of Trump’s latest trade tweets than any inherent strength in sterling.
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