US-China trade truce lifts European stocks
Fiona Cincotta July 1, 2019 6:24 AM
The much anticipated Trump-Xi Jinping meeting in Osaka delivered as expected, some form of truce that includes picking up the broken off trade negotiations between the two countries
The much anticipated Trump-Xi Jinping meeting in Osaka delivered as expected, some form of truce that includes picking up the broken off trade negotiations between the two countries. For the moment the existing import tariffs will remain in place but the markets will live off the hope that fresh Sino-US trade talks will help lift those sooner rather than later.
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.
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