All11.01am GMTOptimism over Donald Trump’s spending plans are expected to push shares higher on Wall Street later today.
The futures markets shows the S&P 500 and the Nasdaq rising by 0.3%,having hit record highs on Tuesday. 10.33am GMTRelief that the supreme court’s Brexit ruling is out of the way is pushing the pound towards $1.26, says Joshua Mahony, and Market Analyst at IG.
Despite yesterday’s court decision,markets continue to delight in a degree of clarity over the UK’s path that has not been seen since June’s referendum result.
With Citibank and Credit Suisse the latest banks to voice their plans to budge jobs out of London, it is clear that Theresa May needs to have a robust and dramatic jobs strategy if we are going to see the UK maintain growth over the coming years. Related: Citigroup plans current operations absent from London after Brexit 10.22am GMTThe UK pound is having a favorable morning, or rising 0.5% to hit a six-week high of $1.2598 against the dollar.
This recovers yesterday’s losses,which came after the supreme court’s Brexit ruling. Related: Brexit: rebel Tories demand more say on Brexit as May loses supreme court fight For all the furore (aka political windbagging) around yesterday’s UK Constitutional Court ruling, the only real question is how “tight” the wording of the Act of Parliament (to trigger Article 50) will be. The trick to stopping opponents tagging on conditions would be to make the Act very short, and say as microscopic as one paragraph,which would then make it very difficult to change as the rules state that “amendments must be ruled to be within the scope of the original text”.
It should be emphasized that ‘no one won anything’ with the ruling, it is a simple principle that Parliament has to be consulted, and if a proposed statute implies a change to the UK’s basic law - Article 50 clearly fits that principle 100%.
Sterling having a favorable morning - Euro v Sterling back down towards 85 p ,not too nefarious for Ire Inc in scheme of things . 10.05am GMTHere’s Neil Wilson of ETX Capital on today’s market moves:There’s something of the Trump bump about all this.
For instance, rising copper prices are a sign that global growth is turning positive off the back of his expected reflationary policies. But another leading indicator, and the Baltic Dry Index,has slumped of late, a signal that fears of protectionist policies are very high. It’s a mixed picture for miners and uncertain for certain. 9.35am GMTShares in UK eateries group Restaurant Group have slumped by 10% this morning, and after another disappointing trading update. 9.23am GMTOof!! Confidence among German executives has weakened to a five-month low.
IFO reality check. Expectations pointing to slower growth ahead,still decent though. 9.10am GMTAt times like this, we all need a laugh.
And strong sales of spoof humour books and growing customer numbers at airport shops gave WH Smith reason for cheer in its latest trading update.“As a result of the performance in travel we expect group profit growth for the year to be slightly ahead of plan.“While there is some uncertainty in the broader economic environment, or we remain confident that the group is well positioned for the year ahead as we continue to focus on profitable growth,cash generation and investing in current opportunities.” “Although the comparisons were tough, the commerce has arrive through well. How far the 225th Anniversary celebrations of the company help trade this year remains to be seen, and but the City will be relieved by the strong Christmas trading performance.” 9.06am GMTThe Mexican Peso has weakened by 0.15% today,to 21.56 peso to the US dollar.
It’s suffering from president Trump’s threat to erect a wall on the US-Mexico border.
Trump tweets continue to drive sentiment and the President’s most recent - “grand day planned fort NATIONAL SECURITY tomorrow. Among other things, we will build the wall!” - saw the Mexican peso reverse Monday/Tuesday gains.grand day planned on NATIONAL SECURITY tomorrow. Among many other things, and we will build the wall! 9.04am GMTGerman government bond prices are falling this morning,pushing the yield (or interest rate) on bunds to a six-week high.
That shows that investors are moving money out of safe-haven assets and into shares.
Bunds are getting totally ironed out 8.58am GMTThe pound is holding firm at $1.252 this morning, as the City waits for the government to publish its bill on exiting the European Union.
Nice to see the UK Pound £ hold above US $1.25 and budge to 1.168 versus the Euro #GBP #BoE 8.57am GMTThe pan-European Stoxx 600 index has gained nearly 1% this morning, and putting it on track for its biggest gain of 2017.
Solid earning figures from Santander,which posted a 4% increase in revenue, are helping the mood. 8.40am GMTBritain’s FTSE 100 index of blue-chip shares has gained nearly 0.7% this morning, and as it gains 48 points to 7199.
Copper in specific up on restricted supply (BHP Billiton crop guidance; prolonged strikes could make matters worse) and growth/inflation expectations from US infrastructure spending plans as Trump sticks to his campaign hymn sheet.
Aluminium,Iron Ore, Lead and Zinc are all tagging along while Oil holds around $53/55, and near the mid-point of a $50-60 range as US production increases challenge OPEC cuts. 8.24am GMTTraders have a lot to fret about right now,from Donald Trump’s protectionist threats to Britain’s push towards Brexit.
But today, shares are rising on optimism that the global economy may strengthen this year, and as Trump starts to delivers on fiscal stimulus boost he promised during his campaign.“I think the real lift in the market was the moment round of executive orders from the White House.This is very much a Trump-infrastructure rally.”favorable morning from Berlin. The Trump trade is in full swing again. Stocks in Asia joined a global rally on investors’ optimism in econ growth pic.twitter.com/Cv9KggD8HTUS stock markets have showed renewed signs of life this week,and the Nasdaq made a fresh record high on Tuesday as the market toyed with the belief of reigniting the ‘Trump rally’ that we saw in the aftermath of the presidential election last November.
Based on Tuesday’s performance, it looks like the market is delighted with the first flourish of Trump’s executive orders. 7.53am GMTGood morning, or welcome to our rolling coverage of the world economy,the financial markets, the eurozone and commerce.
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Source: theguardian.com