Market News & Analysis
US-China trade truce lifts European stocks
Fiona Cincotta July 1, 2019 11:24 AM
European markets are uniformly higher, particularly the heavily China-exposed DAX which is trading up 1.44%. The FTSE has rallied 0.91% lifted by investment firms, banks, miners and oil producers. In contrast Fresnillo lost nearly 3% after the company warned that profits could take an $80 million hit on a tax adjustment exercise.
The pound is plunging this morning after UK manufacturing data showed a decline to the lowest level in six years. Sterling is down 0.34% against the dollar as the PMI showed a serious contraction in UK manufacturing, down at 48.0 in June from 49.4 in May.
Oil rallies ahead of Vienna OPEC meet
A comment from Russia’s president Putin confirming that Russia and Saudi Arabia have agreed to extend the existing OPEC and Russia oil production cuts lifted Brent crude prices by nearly 3% Monday morning.
The move comes as OPEC is about to start its six-monthly meeting on production levels from member countries which is ultimately expected to confirm the agreement with Russia and extend production cuts by six to nine months.