Trade truce and Google's first trillion set the tone
Fiona Cincotta January 17, 2020 4:48 AM
Google breaking through the $1 trillion barrier of market capitalization and the newly approved trade deal between the US, Canada and Mexico helped the market rally.
Google breaking through the $1 trillion barrier of market capitalization and the newly approved trade deal between the US, Canada and Mexico helped the market rally at the end of the week, a week which has already seen a big turnaround in sentiment following the signing of the first part of the Sino-US trade deal. The newly found trade truce means China is expected to buy $95 billion more worth of US commodities than in 2017 and an additional $100 billion worth of goods and services compared with 2017.
NMC hits back, IAG scraps non-European cap
Abu Dhabi-based NMC Health has hired a former head of the FBI as it continues to fight back allegations of over-payment for acquisitions and hiding the full scale of its debts. Shares rallied 7.29%, the highest level this week, but have still some way to go before clawing back the 48% loss following the report made by short seller Muddy Waters in December.
British Airways owner IAG also bounced in early trade after it decided to stop capping ownership from non-European investors.
Chinese economic data provided a rare upbeat signal as the country’s GDP showed less of a decline in growth than markets had expected. Although the trade war did affect some parts of China’s economy its GDP still grew at 6.1%.
The pound is back up at $1.31, the highest level in the week, as investors are positioning themselves against a potential Bank of England rate cut in January.
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