Markets update: trade talks and Brexit talk
- A third consecutive day of global stock market gains is on track after Washington signals that talks with Beijing are progressing, with a “little” slide of the 1st March deadline possible
- European shares hold firm as sectors sensitive to last year’s tariff hikes react well. Mining and metal and technology indices are up 1% to 1.5%
- Iberian shares lag; IBEX-35 falls 0.2%; PSI-20 off 0.9%. Region’s bond yields rise on higher chances of a snap Spanish election
- U.S. futures hold positive territory
- European indices → DAX: +0.2%; FTSE MIB: +0.6%; STOXX: +0.4%; FTSE: +0.5%;
- U.S. index futures → Dow: +0.3%; S&P: +0.3%; Nasdaq: +0.5%
Stock highlights
- European earnings take a turn for the better as Akzo Nobel, the Dutch chemical group beats forecasts, lifting its shares 3.4% and the chemical sector by 1%
- Smurfit Kappa has a similar impact on rival paper and packaging firms as the Irish group’s stock adds 4% on above-forecast earnings
- Investors are more optimistic about Europe’s corporate outlook as a weekly consensus forecast for Q4 rises for the first time since mid-November.
- The trend of less than solid banking earnings continues though. Loan losses drag ABN Amro’s Q4 results lower
FX
- Sterling stand outs, despite increasingly byzantine Brexit prospects and inflation at a two-year low. Fresh, albeit flimsy, Brexit delay talk sparked a 70-pip cable surge earlier and a 40-odd pip EUR/GBP run though a fade is now on
- NZD/JPY’s RBNZ-fuelled advance ran into offers near ¥76 echoing a ¥75.91 top that kicked off a correction a week ago
- The broader backdrop is a weakening dollar as its safe-haven trade-related appeal dwindle
- Most majors move off highs into the U.S. CPI release at the bottom of the hour
Remaining data/highlights
| Local Time | Country | Indicator Name | Period | Reuters Poll | Actual | Prior | Revised |
| 02:00 | China (Mainland) | Total Social Financing | Jan | 3,250.00B | 1,589.80B | ||
| 09:30 | United Kingdom | CPI MM | Jan | -0.7% | -0.8% | 0.2% | |
| 09:30 | United Kingdom | CPI YY | Jan | 1.9% | 1.8% | 2.1% | |
| 09:30 | United Kingdom | RPI MM | Jan | -0.8% | -0.9% | 0.4% | |
| 09:30 | United Kingdom | RPI YY | Jan | 2.6% | 2.5% | 2.7% | |
| 09:30 | United Kingdom | RPIX YY | Jan | 2.5% | 2.7% | ||
| 09:30 | United Kingdom | PPI Input Prices MM NSA | Jan | 0.3% | -0.1% | -1.0% | -1.6% |
| 09:30 | United Kingdom | PPI Input Prices YY NSA | Jan | 3.8% | 2.9% | 3.7% | 3.2% |
| 09:30 | United Kingdom | PPI Output Prices MM NSA | Jan | 0.0% | 0.0% | -0.3% | |
| 09:30 | United Kingdom | PPI Output Prices YY NSA | Jan | 2.2% | 2.1% | 2.5% | 2.4% |
| 09:30 | United Kingdom | PPI Core Output MM NSA | Jan | 0.2% | 0.4% | 0.2% | 0.1% |
| 09:30 | United Kingdom | PPI Core Output YY NSA | Jan | 2.3% | 2.4% | 2.5% | 2.4% |
| 10:00 | Euro Zone | Industrial Production MM | Dec | -0.4% | -0.9% | -1.7% | |
| 10:00 | Euro Zone | Industrial Production YY | Dec | -3.2% | -4.2% | -3.3% | -3.0% |
| 13:30 | United States | Core CPI YY, NSA | Jan | 2.1% | 2.2% | 2.2% | |
| 13:30 | United States | CPI MM, SA | Jan | 0.1% | 0.0% | -0.1% | 0.0% |
| 13:30 | United States | CPI YY, NSA | Jan | 1.5% | 1.6% | 1.9% | |
| 13:30 | United States | Labor Costs Prelim | Q4 | 1.7% | 0.9% | ||
| 13:30 | United States | Productivity Prelim | Q4 | 1.7% | 2.3% | 2.2% | |
| 23:50 | Japan | GDP QQ | Q4 | 0.4% |
