FTSE rallies on China's olive branch
Fiona Cincotta December 6, 2019 6:35 AM
China has acted to soften the US stance in the ongoing trade negotiations by deciding to remove import tariffs on some of the soybean and pork imports from the US. The tariffs of 25% have been in place since July 2018, brought in as a countermeasure to the US tariffs on Chinese imports. The olive branch comes after President Trump suggested that a deal with China may have to be delayed until after the US Presidential election in November 2020.
The news didn’t come a moment too soon for London stocks which have hit a nearly two-month low yesterday. This morning the FTSE rallied by over 0.8% with miners, insurers and retailers leading the way.
Among UK stocks, Associated British Foods, which owns the clothing chain Primark, bounced higher after it said it was maintaining its forecasts for growth for the next financial year.
Oil flat after OPEC decision
Meanwhile in Vienna, an arduous discussion later and the OPEC countries and Russia have agreed to extend the production cuts that are already in place by another 500,000 barrels a day, slightly more than most analysts had anticipated.
Oil’s first reaction was a bounce followed by a slight dip and then a flat line. While it all sounds good on paper it remains to be seen what this means in practice, as Russia has been lagging behind for most of this year in curbing its output except for a short period when tainted oil supplies forced it to stop outflows.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.