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Thursday at 08:00 GMT
What do you want to know
- Pound jumps on the report of the agreement on financial services at Brexit
- Chinese stocks win after last promise of stimulus
- Asia-Pacific equities begin November on a more solid footing
Topics of current interest
The pound sterling was further outpaced by its October low, after new signs indicate that UK-EU negotiations on the Brexit are about to reach agreement on the conditions the departure of the country from the block.
At the same time, European equities had a stable start after further rises for Chinese equities, after the authorities announced a new economic stimulus package to boost confidence as China faces a slowdown in the economy. growth and the trade war between the two countries.
The pound rose 0.9% during the session to reach 1.2878 USD, bringing its two-day advance to 1.5%, the largest increase since January. He kept the currency back to the $ 1.30 mark, which it struggled to keep when expectations of a Brexit deal faded. He also represented a record in five sessions.
"If the UK and the European Union reach an agreement on Brexit by 21 November, the GBP / USD should be closer to $ 1.32 by 21 November,"
Qi Gao, Scotiabank Currency Strategist
Against the euro, the pound was 0.6% higher and it needed £ 0.8808 for a unit of the shared currency.
Dominic Raab, secretary of Brexit, told Parliament Wednesday that Britain could conclude a withdrawal agreement with the EU on November 21st. However, the negotiators told the EU ambassadors that more time would be needed to resolve the Irish border issue.
The rally gained momentum on Thursday after the Times announced that British and European negotiators had reached an "agreement in principle on all aspects of a future partnership on services", which included a exchanging data, the paper said, citing government sources.
The Bank of England's quarterly inflation report, to be released at noon along with the November interest rate decision, is expected to test the rebound of the currency and influence investors' thinking on the currency. pace of rising interest rates in the UK. Monetary policy is expected to remain unresolved this month.
Sterling has hit British stocks, making exports more expensive and increasing the cost of repatriating foreign earnings. London's FTSE 100 lost 0.4%, which is lower than its continental counterparts.
stock
With the sustained recovery of Chinese equities, European stock markets have only weakened after the sharp rise in the previous session.
The Frankfurt Xetra Dax 30 fell 0.2% and the Paris CAC 40 was 0.3% lower.
China's CSI 300 rose 0.7% and Hong Kong's 1.4%.
An official indicator of China's manufacturing output reached its lowest level in more than two years in October, the latest sign of pressure on the Chinese economy. The private sector's reading of manufacturing activity, released on Thursday, was slightly stronger.
Seoul's Kospi Composite fell 0.3%. The Tokyo Topix lost 0.9%.
The Wall Street S & P 500 rose 1.1% in one day and the Nasdaq Composite 2%, while global equities ended the difficult period in October on a better bottom.
Forex
The US dollar index has weakened by 0.4% to 96,861, exceeding its highest level reached for 16 months on Wednesday. The yen was 0.1% firmer at ¥ 112.86.
Fixed income
The yield on 10-year US Treasury bonds was 3 basis points higher at 3.159 percent, while the 1-bps Japanese note yield was 0.122 percent.
Basic products
Brent fell 0.6% to 74.57 dollars a barrel.
Gold was 0.3% firmer at $ 1,218.
For market updates and comments, follow us on Twitter @FTMarkets
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