Commercial optimism pushes stocks higher ahead of UK inflation report – live business | Business

British homebuilder Galliford Try added his voice to the chorus by urging members to avoid a Brexit without agreement.

In its latest financial results, the company said that escaping from the EU would have serious consequences for the economy:

We believe that a controlled departure under a withdrawal agreement concluded between the United Kingdom and the EU will not have a significant direct impact, the chains will not be affected. supply and the EU workers and other foreign workers can adapt over time as detailed future arrangements become clear.

If the UK leaves unresolved, the most important impact we expect is the effect on our markets, and in the Linden Homes market in particular, of a potentially significant decline in consumer confidence and economic activity in general.

Galliford Try adds that it has taken steps to protect its business from shortages of critical materials and products, but that it is "impractical to try to completely isolate our business."

The British FTSE 100 opened 25 more points, or 7,157 points.

This brings us closer to the four-month high of last week.

Paul Donovan, UBS Wealth Management, said hopes for a trade deal between the two countries were bubbling, especially following Donald Trump's comments.

Stock market investors can almost taste the beautiful piece of chocolate cake served on a Mar a Lago plate.

The enthusiasm generated by the prospect of a trade agreement between the two countries has led the actions to recover. The hope is that not only will there be no new taxes, but some of the existing taxes could be reversed.

The British pound is approaching the $ 1.29 against the US dollar this morning, around the end of yesterday's session. Today's inflation data could change the currency pair.

Asian markets reacted positively to Donald Trump's suggestion, reaching their highest levels in four months.

The Shanghai Composite Index in China jumped 2%, while optimism suggests that new rates can be avoided.

Japan's Nikkei gained 1.34% and Hong Kong's Hang Seng 1.1%.

Senior US officials, including Treasury Secretary Steven Mnuchin, will hold high-level trade talks tomorrow in Beijing. So, we could be near a breakthrough.

Jim Reid, of Deutsche Bank, said Trump's proposal to let the March 1 deadline of the customs tariff slip was displacing markets.

US negotiators are holding high-level meetings with Chinese officials in Beijing this week, and flexibility on schedule would reduce pressure for an immediate breakthrough.

Any delay in price increases would be beneficial for the markets. The news was therefore welcomed by a recovery in equities, with outperformance of cyclical and trade-dependent equities.

Overnight, Donald Trump hinted that he could extend the deadline to reach a trade deal with China.

The US president revealed that the existing plan – a trade deal by March 1 – could be reorganized if Washington and Beijing progressed.

Trump said at a cabinet meeting that:

"If we are on the verge of reaching an agreement where we think we can reach a real agreement and everything will be done, I would be happy to leave this slide for a moment.

"But in general, I'm not inclined to do it."

If no agreement is reached, America will increase tariffs on Chinese imports by about $ 200 billion from 10% to 25%, which could have a deterrent effect on trade.

Hello and welcome to our slippery coverage of the global economy, financial markets, the eurozone and businesses.

A double dose of data on the cost of living should keep investors attentive this morning, while optimism sparked by the conclusion of a trade war agreement continues.

Inflation in the United Kingdom (expected at 9.30) is expected to increase from 2.1% per year to 2%. This would give the Bank of England the rare pleasure of reaching its consumer price index target, if only for a month.

Normally, the CPI would be a good benchmark for future interest rate hikes, and therefore the value of the pound sterling. But at the moment, the development of Brexit – and the latest carefree discussions in Brussels bars – is likely to have a bigger impact.

US inflation should also mitigate. A cheaper energy could bring down the annual rate of the US CPI to only 1.5% or 1.6% today, compared to 1.9% in December.

However, any sign of inflationary pressure below the surface will alarm US central bankers of the US Federal Reserve, who are wondering whether they would raise interest rates further.

Elsa Lignos, Royal Bank of Canada, explains:

The dynamics of global inflation in the United States will be low in the first half of 2019, but all that depends on energy prices. Underlying this, underlying inflation should actually be quite firm (our economists note that demand is strong, as shown by strong chain store sales and very good revenue growth). The Fed explicitly said that it could wait as long as inflation was under control – thus, stronger inflation favors less accommodating prospects and a stronger US dollar.

We also get new figures on UK house prices and a health check of euro area factories.

L & # 39; s calendar

• 09:30 GMT: British consumer price index for January
• 09:30 GMT: British real estate market price for December
• 10:00 GMT: Industrial production of the euro area for December
• 13:30 GMT: US consumer price index for January