LONDON World markets have run into sand on Thursday, with sterling dropping about a half a cent after Northern Ireland’s DUP said it couldn’t yet support a Brexit deal that’s been thrashed out by UK and European Union negotiators before today’s EU summit. The text of the Brexit deal appeared to be ready to present to the summit before the DUP statement.
LONDON World markets jumped the gun on a possible Brexit deal on Tuesday. No text of an agreement had been released early on Wednesday, athough a tentative deadline of midnight had passed.
The optimism of late last week has reverted to caution on world markets, with global stocks stalling on Tuesday as questions mounted over the extent and durability of the latest U.S.-China trade truce and the likelihood of a Brexit deal by Thursday’s European Union summit.
LONDON Is there light at the end of the tunnel? Despite all the optimism generated by breakthroughs last week on both the U.S.-China trade war and Brexit impasse, the mood in world markets on Monday was still laced with caution about an imminent resolution to either issue.
LONDON Another day of vague reports, denials and counter-denials on both the U.S.-China trade talks and the Brexit showdown looms, with little that’s emerged from either so far this week proving to be a game changer yet. On balance, the nods and winks on the trade talks in Washington have been read as marginally positive – or at least when combined with fairly clear signalling from the Federal Reserve that it’s about to ease policy again later this month.
The two big deals of the week – the U.S.-China trade talks and the Brexit impasse - appear to be going nowhere. Markets are on edge over both, soothed only by signals from the U.S. Federal Reserve Chairman Jerome Powell overnight that the Fed was open both to further interest rate cuts and a resumption of bond purchases to prevent a repeat of the recent money market and repo ructions.
Mixed messages before Thursday's U.S.-China trade talks in Washington continue to hold world markets in thrall, with Asia markets taking a marginally positive view of the outcome as Chinese markets returned from a week-long holiday.
World markets tip-toed into what's likely to be a pivotal week for the U.S.-China trade war and Brexit, after Friday’s U.S. employment report for September offered an equivocal picture of the U.S. economy. Before the European open on Monday, MSCI’s all-country stock index was just in the black after recording its best one-day gain in month on Friday.
With global trade war fears compounded by new U.S. tariffs on Europe, the Brexit standoff and mounting signs of an industrial recession including the United States and Germany, world stock markets took fright on Wednesday and are on course to record one of their worst weeks in about two months.
Any suggestion the United States could dodge the worst effects of the trade wars it has started and the industrial recession they are triggering was knocked back on Tuesday as the contraction in U.S. manufacturing registered by the ISM business survey unexpectedly worsened, as it did in much of the rest of the world.