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It may seem as if the U.K. has been mired in political turmoil forever, but the deadlock over Brexit and the country’s future may just be broken next week when the public goes to polls.
The U.S. market surged in early trading after a blowout labor report. Activity may have slowed but labor markets and consumer health remain strong.
Cautious optimism about U.S. employment numbers released later today prevailed over news that fall of German industrial production in October was worse than expected.
European stocks rose on Friday, as cautious optimism about U.S. employment numbers to be released later in the day prevailed over news that the fall of German industrial production in October proved worse than expected. The spotlight was on life insurer Phoenix Group, which agreed to acquire rival ReAssure from SwissRe for £3.2 billion, to be paid in cash and shares. Phoenix Group shares rose 0.95% to £7.46 on the news.
(Bloomberg) -- A week from now investors will know three things: the name of the U.K. prime minister, the likely path of Brexit and whether their gamble on Britain’s infamous election polling has paid off.The prospect of a Jeremy Corbyn-led Labour government is quickly being priced out of the market. The pound has climbed against the dollar five days straight through Thursday, up 9% since August when it closed at a more than three-decade low. In stocks, utility companies which would be nationalized under Corbyn’s socialist agenda are rising.Traders are betting on a Conservative Party majority as the market’s preferred outcome -- one predicted by every poll. These forecasts have been wrong before, and some asset gains are starting to look overdone.Ahead of the Dec. 12 vote, here are some key moves:Sterling jumped the most against the dollar since mid-October on Wednesday and hit the highest level versus the euro in more than two-and-a-half years as polls showed the Tories holding their lead over Labour.But investors can glean a deeper insight in the options market, where the price of contracts to exchange currencies in the future shows how much volatility the market expects. Pound-dollar options indicate that expectations for post-election swings next week have jumped the most since 2016 as traders look to capture the aftermath of the vote.Risk reversals, which protect against pound declines, show the most bearish sentiment since the June 2017 election. That may have something to do with the fact the pace of pound gains looks extreme. The pound’s 14-day relative-strength index hit 72 this week. A reading above 70 is usually a sign that an asset price has risen too far, too fast and is poised to retreat -- or at least pause.Before this week, sterling’s RSI breached 70 only three times in the past year, and each occasion preceded a decline. The pound slipped 0.2% as of 8:39 a.m. in London on Friday.While all this plays out, some British stocks are hurting. The pound’s rapid appreciation is no help to the benchmark FTSE 100 Index, which comprises global corporations that reap revenues in foreign income. The Stoxx Europe 600 Index is up 8.9% since sterling’s August low. The FTSE 100 has fallen by almost 1%.Yet one sector is having a good run. Corbyn has pledged to nationalize water and energy providers, a risk which overshadowed the first half of the year for U.K. utility stocks. But as Labour has lagged in the polls these companies have recovered against European counterparts.\--With assistance from Todd White.To contact the reporters on this story: Sam Potter in London at firstname.lastname@example.org;Vassilis Karamanis in Athens at email@example.com;Sam Unsted in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Sam Potter at email@example.com, Sid Verma, Cecile GutscherFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
European stocks mostly rose on Thursday, with the exception of U.K. equities, as multinationals suffered from the continued run-up in the British pound.
Investors are filled with holiday cheer Thursday morning. Global stock markets are, for the most part, higher. Earnings have some U.S. stocks moving. At Home cratered after cutting guidance, but Slack is rising after a solid earnings report.
Sterling could reach $1.35 if the Conservatives win the Dec. 12 general election and a Brexit pact is ratified by Parliament, according to a strategy note from UBS.
DOW JONES NEWSWIRES Budget airline easyJet PLC (UK:EZJ) is returning to the FTSE 100 index (UK:UKX) after a six-month absence in the latest reshuffle alongside food-delivery platform Just Eat PLC (UK:JE) FTSE Russell confirmed late Wednesday.
The catalyst behind the strength is a report from Bloomberg suggesting the United States and China were inching closer to a trade deal. The news is an about face from the narrative that drove Asian shares lower earlier in the day and Wall Street stocks sharply lower on Tuesday.
Sterling climbs on Wednesday, a move that hampered the FTSE 100’s ability to capitalize on renewed U.S.-China trade optimism.
U.S. stocks are set to start the day in the green, rebounding after news that President Donald Trump might delay a U.S.-China trade deal until after the 2020 election roiled markets on Tuesday.
European stock markets are gaining on Wednesday as the trade-talk pendulum swings higher after a report that Washington and Beijing are still working toward a phase one deal.
European stocks are jumping higher after a report said the U.S. and China are working toward a phase one agreement, despite downbeat comments from President Donald Trump a day earlier.
FT subscribers can click here to receive Market Forces every day by email. tells us the currency market expects a Conservative party majority at next week’s general election. is that this market reaction simply illustrates a degree of relief about the prospect of an orderly withdrawal from the EU at the end of January.
Investing.com -- The pound hit its highest level against the euro in over two years on Wednesday on increasing confidence that the general election on Dec. 12th will return the Conservative Party to power with a healthy majority. It also hit a six-month high against the dollar
President Donald Trump suggested a trade deal with China may not come until after the 2020 election, and threatened to impose tariffs on France.
Global markets are mixed following a series of sentiment damaging blows. The U.S. market is down -0.75% and extending Monday losses in early Tuesday trading.
(Bloomberg) -- U.K. sneaker seller JD Sports Fashion Plc, the biggest gainer in the FTSE 100 Index in 2019, isn’t expected to rise much further in the next year, according to analysts.The average 12 month price target for the retailer is 772.6 pence, according to a Bloomberg consensus of analyst estimates. That compares with its current price of 762 pence, suggesting a return potential of only about 1%. In 2019, the shares have more than doubled.“The group is balancing strong sales growth with a resilient margin and this should reassure investors about the future of the company, but we consider the valuation full,” Stifel analyst Eleonora Dani wrote in a note Tuesday. She downgraded her recommendation on the stock to hold from buy, while raising her price target to 780 pence from 680 pence.Shares of JD Sports have jumped 121% in 2019 after joining the FTSE 100 Index in June as the company benefits from exclusive product ranges and acquisitions of smaller rivals. The year-to-date gain for the retailer is significantly above the next-best performers in the index, with software company Aveva Group Plc up 88% and clothier Next Plc climbing 67%.Despite today’s downgrade, analysts are still overwhelmingly bullish on JD Sports, with 13 having a buy recommendation, according to data compiled by Bloomberg. Two analysts rate the retailer hold while one rates it sell.To contact the reporter on this story: Lisa Pham in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Beth Mellor at email@example.com, Jon MenonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
European stocks on Tuesday recovered some of the ground lost in the prior session, with gains tentative on continuing worries about trade tensions.
Wall Street futures slumped lower Tuesday, while European stocks revered earlier gains, after President Donald Trump told reporters in London that a U.S.-China trade deal may have to wait until after next year's Presidential elections.