Sun. Oct 25th, 2020

Trade deal hopes drive European markets to four-year high, ahead of Bank of England decision – business live

Rolling coverage of the latest economic and financial news

9.37am GMT

Every European stock market is higher this morning, driven by the prospect of the US and China rolling back some tariffs.

Here’s the situation after 90 minutes of upbeat trading, following Beijing’s comments that trade levies could be removed in a Phase One deal.

“Markets are showing themselves sensitive to the precise timing of the talks and risk of delay.

But progress is apparently being made and hopes that there will be partial reversal in tariffs hikes is a clear positive for equity markets. We’ve had several false dawns on the trade war this year, but any agreement to start reversing prior to hikes, even in stages, is way more constructive than anything we’ve seen so far.”

One might have expected the market to spike on this news which suggests the agreement isn’t clear cut. Indeed, talk of ‘phase one’ of the agreement implies this could be a long drawn-out process, hence only a muted market reaction.

9.15am GMT

A trade deal can’t come soon enough for German factories.

Industrial production across Germany shrank by 0.6% in September, new figures show, worse than the 0.4% decline expected. That follows a 0.4% rise in August.

#Production in September 2019: -0.6% seasonally adjusted on the previous month. https://t.co/c5TPfxvqIO pic.twitter.com/RH7Pma0lDh

German Industrial Production weakens.

PMIs and Industrial Production in Europe may have bottomed, but the outlook is not a bounce, more likely stagnation. pic.twitter.com/3Vq3AQe5P0

Continue reading…Rolling coverage of the latest economic and financial newsLatest: Stoxx 600 hits highest since 2015China and US ‘agree to roll back tariffsBeijing: Both sides must reduce tariffsPhase One deal could be signed in DecemberGerman factory output falls againComing up: Bank of England interest rate decision 9.37am GMTEvery European stock market is higher this morning, driven by the prospect of the US and China rolling back some tariffs.Here’s the situation after 90 minutes of upbeat trading, following Beijing’s comments that trade levies could be removed in a Phase One deal.“Markets are showing themselves sensitive to the precise timing of the talks and risk of delay.But progress is apparently being made and hopes that there will be partial reversal in tariffs hikes is a clear positive for equity markets. We’ve had several false dawns on the trade war this year, but any agreement to start reversing prior to hikes, even in stages, is way more constructive than anything we’ve seen so far.”One might have expected the market to spike on this news which suggests the agreement isn’t clear cut. Indeed, talk of ‘phase one’ of the agreement implies this could be a long drawn-out process, hence only a muted market reaction. 9.15am GMTA trade deal can’t come soon enough for German factories.Industrial production across Germany shrank by 0.6% in September, new figures show, worse than the 0.4% decline expected. That follows a 0.4% rise in August.#Production in September 2019: -0.6% seasonally adjusted on the previous month. https://t.co/c5TPfxvqIO pic.twitter.com/RH7Pma0lDhGerman Industrial Production weakens. PMIs and Industrial Production in Europe may have bottomed, but the outlook is not a bounce, more likely stagnation. pic.twitter.com/3Vq3AQe5P0 Continue reading…

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