Fri. Sep 25th, 2020

Pound hits six-month high against euro, but trade worries weigh on stocks – business live

Rolling coverage of the latest economics and financial news

12.57pm GMT

European stock markets have lost ground today, as a new bout of trade war jitters hit stocks.

Markets continue to work on the expectation of a trade deal its close, so close – but this might be a case of labouring under a misapprehension. The message from China is there is no news on trade talks – just the tiny matter of Hong Kong…

Donald Trump has signed a law backing the Hong Kong protestors. At such a delicate moment for trade talks this could tip the balance against agreement. To rob a phrase, Trump seems apt to bring discord where there was harmony. China has promised countermeasures.

12.29pm GMT

Despite its recent recovery, the pound is still around 10% below its value in June 2016, before the EU referendum.

Ian Strafford-Taylor, CEO of international money specialist, Equals, says this has a significant impact at the foreign exchange desk:

“Despite the TV debates and mud slinging between parties, the pound is actually in a much stronger position against the euro than it was at the start of the year – currently 7% higher with a rate of 1.174. It’s not quite at the height of the one-year peak we saw in May this year (1.175) but it’s not far off and is standing at a six-month high.”

“A lot can happen in the two weeks we still have until the election so we shouldn’t expect to see the pound stay at these rates. The build-up to past elections have seen the pound go on a rollercoaster journey and a new Prime Minister typically brings about a significant change in the strength of the pound, so we should brace ourselves for more turbulence.”

Continue reading…Rolling coverage of the latest economics and financial newsLatest: Pound rallies after YouGov pollHouse prices up 0.5% in NovemberFastest monthly inflation since July 2018Annual house price inflation at 0.8% 12.57pm GMTEuropean stock markets have lost ground today, as a new bout of trade war jitters hit stocks.Markets continue to work on the expectation of a trade deal its close, so close – but this might be a case of labouring under a misapprehension. The message from China is there is no news on trade talks – just the tiny matter of Hong Kong…Donald Trump has signed a law backing the Hong Kong protestors. At such a delicate moment for trade talks this could tip the balance against agreement. To rob a phrase, Trump seems apt to bring discord where there was harmony. China has promised countermeasures. 12.29pm GMTDespite its recent recovery, the pound is still around 10% below its value in June 2016, before the EU referendum.Ian Strafford-Taylor, CEO of international money specialist, Equals, says this has a significant impact at the foreign exchange desk:“Despite the TV debates and mud slinging between parties, the pound is actually in a much stronger position against the euro than it was at the start of the year – currently 7% higher with a rate of 1.174. It’s not quite at the height of the one-year peak we saw in May this year (1.175) but it’s not far off and is standing at a six-month high.”“A lot can happen in the two weeks we still have until the election so we shouldn’t expect to see the pound stay at these rates. The build-up to past elections have seen the pound go on a rollercoaster journey and a new Prime Minister typically brings about a significant change in the strength of the pound, so we should brace ourselves for more turbulence.” Continue reading…

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