Optimism flew to Asian Markets.
Asian Stocks were trading in the green today, driven by the shifting language regarding trade talks between US and China as we draw closer to the December 15 target for a phase one deal.
In Japan, Prime Minister Shinzo Abe announced a $239 billion stimulus package to support growth, complementing a similar boost in November. Traders weren’t overly impressed as the size of the package means its impact is expected to be limited: one bucket of water won’t put out a wildfire.
Meanwhile, USDJPY is trading within a tight range but securing a foothold above 108.20: this may increase the anti-risk Japanese Yen losses against the US dollar to test the resistance at 109.30.
Cable really wants the Tories
Sterling continued its rally overnight after breaking out of the major barrier at 1.30 and I believe this could pave the way for a return to the levels last seen in April at 1.32.
The bullish move is in pricing a majority win for the Conservative Party in the coming parliamentary election. This victory isn’t guaranteed, however, so in a bid to challenge the narrowing polls, Boris Johnson unveiled a list of new policies for the first 100 days of a Tory government and reiterated that the withdrawal agreement will be law before the end of January 2020.
In light of the fluctuating trade talks, markets are betting on a new term for Johnson and his decisive Brexit plan but again - it isn't over till it's over.
Future contracts on FTSE 100 are pointing a higher open
A relatively dry economic calendar, Boris Johnson’s promises about increasing spending while cutting taxes, increasing confidence about a Conservative lead in the election, and reports of progress in the trade talks between the US and China are the main factors which stand behind the British index rebound from 7,132 levels and a green open for today. We anticipate the FTSE to be track for more gains in today session and rising initially to 7,220 zone.
Biggest surge in two months and OPEC + meeting in Vienna.
Oil rallied the most in two months backed by inventories falling more than expected last week and optimism about trade talks.
The precise outcome it is not clear yet and despite discussions of a deeper cut, the Saudis are furious about compliance from other members and have threatened to ramp up production instead of cutting.