Rolling coverage of the latest economic and financial news, as US president Trump claims a trade deal is very close
- Latest: Stoxx 600 index at highest since 2015
- FTSE 100 hits two-month high
- Chinese factory profits plunge 9.9%
- Worst monthly slide since 2011 (apart from Jan-Feb)
- Economists say China is struggling
Mining stocks are rallying this morning, despite the slump in Chinese factory profits.
Trade war optimism seems to be outweighing anxiety over China. And that’s pushed the Stoxx 600 index to a new four-year high.
Enduring optimism the US can reach an interim trade deal with China has helped investors overlook disappointing Chinese economic data. The steepest fall in Chinese industrial profits in eight months suggest China is still feeling the heat from the trade war on top of a more widespread growth slowdown. Inventors can stomach a slowdown in China if they see an endpoint via the phase one trade deal. If the deal doesn’t materialise and the data out of China continues to weaken, then things could go south quickly.
Wednesday’s top early risers are Asia-focused HSBC alongside mining shares, which all stand to benefit from China striking a trade deal with the US. UK domestic companies are marred in election uncertainty – that explains the relative under performance of UK vs European shares this year
Britain’s FTSE 100 has hit a two-month high this morning, as election worries push the pound down.
The blue-chip index has gained 38 points, or 0.5%, to 7441, its highest point since late September.