Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Sterling Gets Choppy As Commons Takes Centre Stage

Published 09/05/2019, 04:25 AM
Updated 07/09/2023, 06:31 AM
GBP/USD
-
UK100
-
MRON
-
TOPX
-
CSI300
-

Sterling gets choppy as Commons takes centre stage

It is all about politics in the markets at the moment. As the Boris Johnson government has progressively lost control of the situation, so sterling has rallied.

It now looks more likely that a coalition of rebel Conservative MPs and opposition parties will take a no deal Brexit off the table with legislation, which was what the market was hoping for. The pound climbed from around 1.218 vs the USD last night to hit 1.226 before slumping again in overnight trade. It saw a big tactical sell off from overnight levels down to 1.2215 before starting to stage another rally.

This is the sort of volatility in sterling we were expecting in what is a dramatic week in UK politics.The next obstacle will be whether Labour will rise to Johnson’s challenge of an election in October..

U.S. and China agree to Washington sit down talks

The U.S. and China will be re-starting trade talks next month. There had been very little obvious progress in these talks over the summer months. The decision has been take to hold ministerial-level talks in Washington, which some analysts regard as evidence that both sides are creeping closer to something more substantive.

The news had an immediate impact on Asian markets, with the CSI 300 index of leading Chinese stocks rising 1.8%. Japan’s TOPIX index was also up more than 2%. Right now both sides are nowhere close to where they were in April, but the US economy is starting to feel the pain from the Chinese tariffs, particularly states with a heavy agricultural bias.

FTSE marginally lower but Melrose surprises

The FTSE has opened slightly down this morning, giving up almost all over yesterday afternoon’s final surge. Melrose Industries (LON:MRON) was up over 7% following better than expected first half numbers. The company also said it would be raising its dividend by 10%.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.