Asia
Markets in Asia took encouragement from signs of possible progress in trade talks between the US and China. Hong Kong led the region in percentage terms with a rise of nearly 1.5%, or 350 points to 26,682. Regional shares were boosted by a more conciliatory tone from the US administration than of late. National Economic Council director Larry Kudlow called the upcoming G20 summit an "opportunity to turn a new page" on trade.
Europe
The pound attempted a minor rally against the dollar, but at around $1.276 is still off from the $1.31 level seen at the start of the month. Political events remain fluid: Theresa May is still on tour selling the “certainty and stability” of the recent Brexit deal, with today’s stop being Remain heartland Scotland. Brexit impact assessments are due from the Government, with scenario analysis taking in No Deal, May’s Deal and Remain. The Bank of England also publishes its analysis. Meanwhile, Chancellor Philip Hammond admitted that the UK will be worse off in the event of leaving of the European Union.
The FTSE 100 is currently just in positive territory at 7,021 points but is only fractionally higher on Tuesday’s close and has dipped into the red already this morning.
Thomas Cook (TCG) was under pressure again today after yesterday’s profit warning sent shares down 23%. The FTSE 250 travel firm’s shares were off 7% again today at 35p – in May this year they were close to 150p.
Most Eurozone indices were under 0.5% higher on the day but Italy’s FTSE MIB was a touch lower as a clash with the EU over the country's budget looks likely tomorrow.
North America
Federal Reserve chair Jerome Powell speaks to the Economic Club of New York today after coming under further pressure from the President, who believes the Fed isn’t “accommodating” Trump’s deals enough. Trump reiterated his regret at nominating Powell to replace Janet Yellen and blamed Powell for the recent stock market wobble, and General Motors’ job losses and plant closures.
US stock markets are expected to build on yesterday’s gains today. In economics, the second estimate of US GDP is in view – the reading is expected to remain the same at 3.5% growth on the quarter on an annualised basis. The advanced goods trade balance is also expected.
Microsoft (MSFT) overtook Apple (AAPL) yesterday as the world's most valuable company despite the latter bouncing back from fears over Trump tariffs on the iPhone.
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