Fri. Sep 25th, 2020

Pound surges after Conservative election triumph and US-China trade deal – business live

Rolling coverage as the financial markets react to the Conservative Party’s election triumph, and a breakthrough in the trade war

6.46am GMT

Neil Wilson of Markets.com says Johnson’s ‘thumping victory’ provides clarity for investors:

Sterling jumped sharply, enjoying its best gain in a decade as the Conservatives romped home to a convincing victory, while the FTSE also rose [in pre-market trading] as investors enjoy the Boris Bounce….

For the markets and for business this is the perfect result – a clear majority for the Tories, the Corbyn risk nullified entirely, a major reduction in uncertainty around Brexit and even a quick Budget to inject the economy with some added impetus. The only doubts are around the next phase of Brexit – the future relationship – but with a large majority the government will be in a better place to negotiate and do what it needs to do.

6.40am GMT

This chart shows how the pound surged to an 18-month high as soon as the exit poll was released.

It continued to climb as early results came in, smashing $1.35, in its biggest surge in a decade. That’s a gain of around 2.5%, or three cents.

The pound’s breaching of 1.20 versus the euro feels significant, and I would not be surprised to see sterling strengthen further from here.

Similarly, at the time of writing, the pound was trading at around 1.35 versus the US dollar; from here, it wouldn’t seem too outlandish to suggest that 1.40 could soon be within reach.

Continue reading…Rolling coverage as the financial markets react to the Conservative Party’s election triumph, and a breakthrough in the trade warIntroduction: Sterling hits 18-month high vs US dollarInvestors welcome clarity on BrexitPound up three cents vs US dollar 6.46am GMTNeil Wilson of Markets.com says Johnson’s ‘thumping victory’ provides clarity for investors:Sterling jumped sharply, enjoying its best gain in a decade as the Conservatives romped home to a convincing victory, while the FTSE also rose [in pre-market trading] as investors enjoy the Boris Bounce….For the markets and for business this is the perfect result – a clear majority for the Tories, the Corbyn risk nullified entirely, a major reduction in uncertainty around Brexit and even a quick Budget to inject the economy with some added impetus. The only doubts are around the next phase of Brexit – the future relationship – but with a large majority the government will be in a better place to negotiate and do what it needs to do. 6.40am GMTThis chart shows how the pound surged to an 18-month high as soon as the exit poll was released.It continued to climb as early results came in, smashing $1.35, in its biggest surge in a decade. That’s a gain of around 2.5%, or three cents.The pound’s breaching of 1.20 versus the euro feels significant, and I would not be surprised to see sterling strengthen further from here.Similarly, at the time of writing, the pound was trading at around 1.35 versus the US dollar; from here, it wouldn’t seem too outlandish to suggest that 1.40 could soon be within reach. Continue reading…

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