FTSE rallies on China's olive branch
Fiona Cincotta December 6, 2019 7:35 PM
China has acted to soften the US stance in the ongoing trade negotiations by deciding to remove import tariffs on some of the soybean and pork imports from the US.
China has acted to soften the US stance in the ongoing trade negotiations by deciding to remove import tariffs on some of the soybean and pork imports from the US. The tariffs of 25% have been in place since July 2018, brought in as a countermeasure to the US tariffs on Chinese imports. The olive branch comes after President Trump suggested that a deal with China may have to be delayed until after the US Presidential election in November 2020.
The news didn’t come a moment too soon for London stocks which have hit a nearly two-month low yesterday. This morning the FTSE rallied by over 0.8% with miners, insurers and retailers leading the way.
Among UK stocks, Associated British Foods, which owns the clothing chain Primark, bounced higher after it said it was maintaining its forecasts for growth for the next financial year.
Oil flat after OPEC decision
Meanwhile in Vienna, an arduous discussion later and the OPEC countries and Russia have agreed to extend the production cuts that are already in place by another 500,000 barrels a day, slightly more than most analysts had anticipated.
Oil’s first reaction was a bounce followed by a slight dip and then a flat line. While it all sounds good on paper it remains to be seen what this means in practice, as Russia has been lagging behind for most of this year in curbing its output except for a short period when tainted oil supplies forced it to stop outflows.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.
Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.