This week’s general election showdown is joined by an impending tariff deadline between the US and China, and Christine Lagarde’s first meeting as ECB chief.
UK: The Pound and FTSE await General Election
So far the pound has taken the general election in its stride, striking a wave of multi-month, multi-year highs as the polls point to a Tory chunky tory majority. But can that confidence last during the week of the vote? And what will the pound’s movements mean for the FTSE, which is also dealing with the trade situation between the US and China?
Of course, this week is going to be dominated by last-minute surveys and speculation. However, there is a momentary distraction on Tuesday, with the release of the monthly GDP reading alongside the manufacturing and industrial production figures.
UK: Stocks to Watch
It’s also a fairly decent week for corporate reports. Tuesday has the latest release from Ashtead Group, followed by Stagecoach and Ted Baker on Wednesday, TUI, Dixons Carphone, Purplebricks and Ocado on Thursday, and Balfour Beatty on Friday.
US: Trade tariff deadline looms
Though Donald Trump claimed that trade talks are ‘moving right along’, they need to speed up if the superpowers are to avoid the rather awkward situation of the US slapping another $156 billion of Chinese imports with tariffs on Sunday 15th December.
The markets are likely going to spend the trading week even more hyper-focused on the issue than normal, desperate for any sign that Beijing and Washington can push through a ‘phase one’ agreement.
On top all of that, there’s the small matter of Wednesday’s December statement from the Federal Reserve. Compared to other announcements this year it will be relatively low key; nevertheless, any signs of its 2020 path could cause some movement.
Eurozone: New ECB chief to offer insight for 2020?
Light on data – there’s the German trade balance on Monday and the ZEW economic sentiment readings on Tuesday – this Eurozone week is really notable for one thing: Christine Lagarde’s first meeting as the head of the ECB. Investors will be keen to get a sense for what the new chief has planned for the region in 2020.
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