FTSE higher, pound bounces as Brexit talks continue
Fiona Cincotta October 15, 2019 7:27 AM
The FTSE is showing signs of optimism with banks leading the index higher on the back of continued Brexit negotiations. While what is happening between the UK and the EU negotiators can’t really be called deal progress, at least the negotiations are still going, providing a small glimmer of hope that by the end of the week the PM will have something to bring home to show MPs in time for the October 19 deadline.
The pound has bounced almost a full half a percentage against the dollar and similarly strengthened 0.53% against the euro.
The day in Asia ended mixed with most indexes finishing higher except in China where the Shanghai and Hong Kong indexes struggled because of recent weak economic data.
Later this week China will release its Q3 GDP which is expected to come in either flat or marginally weaker from Q2, enough to keep markets jittery.
What is worse the data from recent months points to a sustained economic slowdown that does not only hark back to trade wars but is a deeper domestic issue, as the country struggles to keep the pace of expansion going at the same level that it enjoyed for the better part of three decades. A slowdown in China is probably the most worrying for commodity markets implying a drop in demand over the coming quarters.
London-listed miners are all showing signs of erosion this morning in anticipation of the Chinese economic data while oil has dropped below the key $60 level.
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