Trade war fears have eased, with Trump planning to meet the Chinese vice-premier tomorrow. Meanwhile, the pound is on the rise, following an optimistic statement from Irish Taoiseach Varadkar
- Markets rise as trade war hopes boost sentiment
- Commodity stocks drive FTSE higher
- Sterling on the rise amid positive meeting with Leo Varadkar
Global markets are on the rise as we close out the European session with green across the board. Sentiment was always likely to be dominated by today’s US-China trade talk, and the past 24 hours have proven difficult for traders amid a raft of conflicting rumours. However, the biggest piece of good news for markets thus far came in the form of a Trump tweet which set out plans for him to meet Liu He tomorrow. Markets certainly perceive the meeting as an additional opportunity for the deadlock to be broken. Despite US rejection of Chinese plans for a partial deal, rumours that the US could consider a currency pact to stave off impending tariffs at least points to some form of de-escalation.
Commodity stocks have been the big outperformer as a result of improved trade war sentiment, with Antofagasta, Anglo American, and Glencore all heading up the leaderboard at the close of the day. While the US and China remain some way from a final deal, the speculation over a potential de-escalation has boosted sentiment for the likes of copper, the yuan, and US stocks.
The pound has rebounded sharply after the meeting between Boris Johnson and his Irish counterpart brought a conciliatory tone despite the fears expressed after a combative conversation with Angela Merkel on Tuesday. However, while they agreed a solution could be found, it seems the meeting was light on details on exactly how this Ireland-based deadlock could be broken.
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