Trade truce and Google's first trillion set the tone
Fiona Cincotta January 17, 2020 9:48 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.
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.