Sterling up as Parliament is shuttered for five weeks
Fiona Cincotta September 10, 2019 9:12 AM
The prime minister has now prorogued Parliament, effectively shutting down further debate until the middle of October. Johnson was again refused the prospect of an election in yet another defeat for the government in the Commons last night.
Traders will be watching what the government does very closely. Sterling was also boosted by positive economic data which saw the UK economy grow by 0.3% in July.
Banks up despite ongoing PPI impact fears
The FTSE opened down marginally this morning. Lloyds Bank, Barclays and HSBC were all in the green as they bounced back from news of a last minute rush of PPI claims in August. Banks like Lloyds and Co-op have already said they expect last minute requests to hit financial performance in Q2-3. Lloyds is still well down on its July levels following heavy selling in August.
China data pushes Asian and European markets down
China’s blue chip share index, the CSI300, was down 0.41% overnight as more negative economic data emerged. This also pulled down most Asian exchanges, although the Nikkei still managed to finish in positive territory.
We are seeing more focus on the response of central banks to the slowdown however, with all eyes on the ECB on Thursday, where there is the expectation that some form of stimulus package will be announced. Also on the radar is the Fed meeting next week when the US central bank is expected to cut rates.
Disclaimer: GAIN Capital UK Limited (trading as "Forex.com") is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, Forex.com does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by Forex.com or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although Forex.com is not specifically prevented from dealing before providing this material, Forex.com does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
For further details see our full non-independent research disclaimer and quarterly summary.