The end is perhaps in sight for Brexit and not a moment too soon for markets. While the FTSE flirts with its new home around the 7,200 benchmark (a far-cry from July’s 7,700 level), European indices appear to have continued yesterday’s rally. This no doubt owing partly to Boris Johnson’s assertiveness and Chinese diplomacy, both of which have given hope that ongoing political impasses have some chance of being overcome.
Speaking on this mornings continued rebound, Spreadex Financial Advisor Connor Campbell comments,
“Still trading on the fumes of yesterday’s positivity, the European markets pushed slightly higher after the bell.”
“Clawing its way back to 7200, the FTSE was up 0.2-0.3%, sitting at levels that vary between a one week peak and a fortnight high. Still, unless it manages an unprecedented rally this Friday, August has been an incredibly costly month, given that it closed out July with a foray past 7700.”
“That kind of performance is echoed elsewhere. The DAX climbed half a percent to flirt with 11900, a price it hasn’t seen since the start of August; this time last month it was trading above 12450. The CAC was less eager, though a 0.2% increase kept it the right side of 5460.”
“Looking ahead – which is maybe a tad premature; the gap between morning and afternoon sessions has often been massive this month – and the Dow Jones is also set to post some milquetoast growth. A 60 point increase would put the index back above 24600; like the DAX, its best price since near the start of August, but 800 points off of where it was at the end of July.”
“Though it has tried to put on a brave face, sterling remains subdued at best. Cable is now lurking at a one-week low of $1.2185, while against the euro it is at €1.104, the currency failing to put much stock in Boris Johnson stating that he wants to ‘step up the tempo’ of Britain’s Brexit talks with Brussels. More of a mover will likely be the emergence of a cohesive plan to legally prevent a no-deal exit from occurring.”
The pound unsurprisingly slugs behind its European counterparts, but hopefully won’t face and further turbulence from political unrest during the day.
Other market and macro financial updates have come from; Parliament being prorogued, No-Deal Brexit preparations, UK GDP during the second quarter, the London Stock Exchange Group (LON: LSE), the US-China currency manipulation debacle, and analysts’ outlook for markets and currencies.