Asian trading was modest overnight following last week’s severe share movement jolts, not to mention the sacking of Steve Bannon, a key member of President Trump’s entourage. Australian and Japanese stock movements – the Nikkei is now at its lowest level since early May – were largely negative but Hong Kong and Chinese markets rose.
Much of the financial world will be anticipating the Jackson Hole economics symposium starting Thursday. Key bankers Janet Yellen, US Federal Reserve, and Mario Draghi, European Central Bank, will attend.
Much attention, then, on potential policy shifts, particularly whether Draghi will begin clipping QE. This could bolster the euro – the world’s best performing major currency this year – further.
Overnight the euro was down -0.07% to $1.1744 while sterling was -0.03% lower at $1.2868. Still plenty of geo-political bickering about however: the US commences 10-day joint military operations manoeuvres this morning with South Korea. This has upped North Korean rhetoric accusations – “pouring gasoline on fire” – again.
- UK FTSE 100 7,323.98 -0.86%
- Dow 21,674.51 -0.35%
- S&P 500 2,425.55 -0.18%
- Nasdaq 6,216.53 -0.09%
- Nikkei 225 19,403.55 -0.34%
- DAX 12,165.19 -0.31%
- CAC 40 5,114.15 -0.64%
- Gold 1,292.10 +0.04%
- Oil WTI 48.42 -0.19%
UK's top trade negotiator starts today
Today sees the start of a new job for Crawford Falconer, Britain’s new chief trade negotiation adviser. Falconer is a New Zealander and the former ambassador to the World Trade Organisation (WTO). His experience is needed as the UK has relatively little experience with trade deals. Much of this work was handled by Brussels in the past.
His specific job remit includes managing new trade deals with non-EU countries. But it’s likely Falconer will want to heavily push the WTO agenda further.
“An economy like the UK,” he said earlier in the year, “is going to be an independent and powerful voice for reform and change in the global economy, and that is going to be a massively refreshing political voice.”
Co-op Bank deal tipped to go through
The Co-op Bank's £700m rescue package will likely be waved through today by investors. Bank-rolled by its hedge fund owners questions remain whether the Co-op will still be able to push hard its ‘ethical’ point of lending difference to customers, new and old.
Superficially the company’s brand name does not seem to have been damaged. It is likely the hedge funds see the promise of future higher UK interest rates (and more profit opportunity). With UK wages and inflation struggling meaningfully to rise that rate climb is looking a distance off, still.
Breaking news: Australian miner Fortescue Metals has seen its profits (and share price) surge on higher iron ore prices and lower costs.