FTSE closing in on 7,400 as global markets edge up
Expectations that US-China tariffs will ease push up equity prices
It’s been a day of green screens across the global trading rooms, with stock markets from China to New York climbing on the back of the imminent “phase one” of the US-China trade pact, which is expected to include a rollback of existing tariffs.
However, the markets shuffled upwards, rather than making giant strides.
While the Hang Seng climbed to a three-month high, it only gained 0.5 per cent to close at 27,683. This is its highest level since July 31.
In China, the Shanghai Composite Index also closed up 0.5 per cent, losing some of its earlier ground when it breached the 3,000 mark for the first time since October 16, but still finishing at the highest level for three weeks.
The Nikkei finished up 1.76 per cent at 23,252. In London, FTSE100 finished 18 points higher at 7,388 and the FTSE All Share also closed up by 9 points at 4,065.
At 5pm GMT the Dow Jones Industrial Average was up slightly (0.11 per cent) to 27,489.
The pound recovered after yesterday’s slight drop finishing 0.4 per cent up against the euro at 1.15 but down slightly – 0.14 per cent – against the dollar at 1.28. Even so, the pound rose 5.2 per cent over the month from around $1.22.
Bitcoin rose to $9524 at one point this morning but slipped back before recovering slightly. It’s still up on the month at $9355 and edging closer to that magical $10k figure.
A barrel of Brent Crude rose 1.14 per cent to around $64. Gold lost value, dropping by more than 1.8 per cent to $1,484 an ounce – a long way off its high in 2011 of $1,896.
The green screens were also showing when it came to government 10 year bonds where UK, German and Japanese were all – modestly – up.