FTSE 100 to pause whilst global equities rally as Brexit deadline looms

The FTSE 100 is set to start Thursday almost flat as UK stocks don’t follow US and Asia stocks higher, with traders monitoring very separate sets negotiations either side of the Atlantic.

London’s blue-chip benchmark is called just a couple of points higher, with CFD firm IG Markets making a price of 5,952 to 5,955 with just over an hour to go until the open.

President Donald Trump halted Covid-19 stimulus deal talks with democrats and instead a narrow set of supports will be put in place only for the airline industry.

“Nancy Pelsoi, of the Democrats, said that it was a missed opportunity for a major relief package,” said David Madden, analyst at CMC Markets.

“It seems that the Donald hit the reset button on the discussions so he could try and be in control of the situation. US stock markets had a better reaction to the developments … recouping the losses that were posted on Tuesday.

“Equites markets in Asia are a mixed bag.”

Closer to home market attentions are on entirely different negotiations – or lack thereof – with the end to the Brexit transition now looming (on December 31) and progress in talks are seemingly unremarkable.

Michael Gove yesterday attempted to strike up some positivity and optimism and chief UK negotiator said a deal would be possible albeit so would be a no-deal exit as.

On Wall Street, Wednesday, the Dow Jones closed 530 points or 1.9% higher to 28,303, while the S&P 500 added 1.74% to finish the day at 3,419.

The Nasdaq was marked up 1.88% to close at 11,364.

The small-cap focussed Russell 2000 index, meanwhile, advanced 2.14% to 1,611.

In Asia, Japan’s Nikkei tacked on 254 points or 1.09% to trade at 23,668 while Hong Kong’s Hang Seng slipped 152 points or 0.6% to 24,094. The Shanghai Composite was down 0.2% at 3,218.

Around the markets

The pound: US$1.2937, up 0.14%

Gold price: US$1,888 per ounce, up 0.05%

Silver: US$23.855 per ounce up 0.21%

Brent crude: US$42.14 per barrel, down 1.19%

WTI: US$40.01 per barrel, up 1.62%.

Bitcoin: US$10,627, up 0.22%

Story by ProactiveInvestors