Brexit talks over breakfast
The meeting between Boris Johnson and his Irish counterpart Leo Vardkar has ended on a surprisingly positive note with the two sides saying that they may have found a potential solution for a Brexit deal. The pound bounced late Thursday in one of the steepest one-day rises in the last five months and seems to be holding above $1.245 as EU negotiators have grabbed onto the positive momentum.
EU’s Michel Barnier and Brexit Secretary Steve Barclay are talking about possible solutions over croissants and coffee in Brussels on Friday morning raising hopes that the PM will have a Brexit deal to offer MPs by the October 19 deadline.
Although the FTSE is a touch lower, weighed down by declines in luxury brand Burberry Group and advertising firm WPP the list of gainers this morning is far more impressive as the recently battered property companies and banks lead the recovery. RBS and Lloyds have rallied 4.88% and 4.56% respectively, while Persimmon, Kingfisher and Barratt Development are following closely behind.
Oil price slide comes to abrupt stop as oil tanker explodes
The quiet stretch in the Middle East came to an end overnight as an Iranian oil tanker exploded off the coast of Saudi Arabia. While the market is still waiting for details of what actually happened Friday morning Brent crude prices are already rallying back up above $60. The temporary slide into the $58-$59 territory earlier this week caused by worsening US-China relations and concerns over future Chinese oil demand is now over.
Later in the day the CFTC’s commitment of traders report for the oil market will shed some light about how money managers repositioned themselves in this commodity during the last week particularly after recent build up in US crude oil inventories and the EIA revising its outlook for 2020 oil prices.
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