ZCZC
BCN-06
MARKETS-WORLD
Pound jumps on Brexit hopes as global stocks firm
NEW YORK, Sept 14, 2019 (BSS/AFP) – The British pound hit a seven-week
high against the dollar Friday amid easing fears of a no-deal Brexit.
Stock markets meanwhile won support after China said some US agricultural
products including pork and soybeans would be exempt from added tariffs,
ahead of trade talks between Beijing and Washington scheduled for October.
After flirting with new records, US stocks treaded water as investors
awaited the outcome of next week’s monetary policy meeting of the Federal
Reserve, which is widely expected to deliver the second interest rate cut of
the year.
Adam Sarhan of 50 Park Investments told AFP the day’s subdued trading was
a “normal and healthy action after a big rally.”
“This is the perfect area for the market to pause before it tries to reach
new highs,” he said.
Beijing’s trade announcement was the latest in a new series of
conciliatory measures between the world’s two biggest economies, who for the
past year have been locked in a bitter trade war resulting in tit-for-tat
tariffs on hundreds of billions of dollars in bilateral trade.
– ‘Most terrible example’ –
In foreign exchange, the pound was in focus after the British currency
jumped to its highest level since late July.
The pound “has rallied… as traders are less fearful about the
possibility of a no-deal Brexit,” said David Madden, analyst at CMC Markets
UK.
Parliament passed a law earlier this month aimed at preventing a no-deal
Brexit, but Prime Minister Boris Johnson is adamant Britain will still leave
the EU on schedule October 31 with or without a withdrawal agreement.
The speaker of Britain’s House of Commons, John Bercow, said disobeying
the law “would be the most terrible example to set to the rest of society.”
In a speech in London on Thursday, Bercow warned that if the government
came close to doing so, parliament “would want to cut off such a possibility
and do so forcefully.”
MORE/HR/1005
ZCZC
BCN-07
MARKETS-WORLD 2 LAST NEW YORK
– No big bazooka –
In equities markets, all key European indices ended the day higher, while
Wall Street had a split finish after an extended rally this week.
The benchmark Dow posted its eighth consecutive positive close, the
longest winning streak in more than a year.
Equities rose in Asia after the European Central Bank on Thursday unveiled
a fresh round of economic stimulus and another interest rate cut.
The ECB said it would restart its bond-buying program to boost liquidity,
provide support for struggling banks and reduce borrowing costs deeper into
negative territory in a bid to kick start lending.
“In the end, it wasn’t a big bazooka, but ECB President Mario Draghi did
his level best trying to convince investors that monetary policy will remain
extremely accommodative for some considerable time to come,” said Gavin
Friend, a senior market strategist at National Australia Bank.
– Key figures around 2030 GMT –
Pound/dollar: UP at $1.2496 from $1.2337 at 2030 GMT
Euro/pound: DOWN at 88.66 pence from 89.67 pence
Euro/dollar: UP at $1.1078 from $1.1064
Dollar/yen: FLAT at 108.11 yen
New York – Dow: UP 0.1 percent at 27,219.52 (close)
New York – S&P 500: DOWN 0.1 percent at 3,007.39 (close)
New York – Nasdaq: DOWN 0.2 percent at 8,176.71 (close)
London – FTSE 100: UP 0.3 percent at 7,367.46 points (close)
Frankfurt – DAX 30: UP 0.5 percent at 12,468.53 (close)
Paris – CAC 40: UP 0.2 percent at 5,655.46 (close)
EURO STOXX 50: UP 0.3 percent at 3,550.11 (close)
Tokyo – Nikkei 225: UP 1.1 percent at 21,988.29 (close)
Hong Kong – Hang Seng: UP 1.0 percent at 27,352.69 (close)
Shanghai – Composite: Closed for a holiday
Brent North Sea crude: DOWN 16 cents at $60.22 per barrel
West Texas Intermediate: DOWN 24 cents at $54.85 per barrel
BSS/AFP/HR/1010