The whiplash from the commentary around the Sino-US trade talks is yet again moving the markets this morning with Asian stocks bouncing higher after White House economic adviser Larry Kudlow indicated that a trade deal with China is within reach. The optimism could potentially last until the next President Trump tweet but for the moment London shares are duly following suit.
Those with a significant exposure to Chinese markets such as miners have gained the most while hotel chain owner Whitbread also rallied, climbing to the top of the index.
BT hammered by Corbyn’s broadband promise
It has been a tumultuous morning for BT, courtesy of Jeremy Corbyn. The Labour leader’s promise to nationalise parts of the telecom provider and bring in free broadband for everybody if he wins the December election triggered panicked selling of the telecom’s shares causing a 3.6% slump. However investors quickly dismissed it as an unlikely scenario given that Labour is trailing significantly behind the Conservatives according to polls – or maybe it was Boris Johnson’s response calling the plans “crackpot” - and the share bounced back to trade only 0.23% lower.
Brent crude slips on speculative selloff
Brent crude is down 0.69% this morning as traders attack the key $62 level in what seems more of a speculative play rather than a move based on fundamentals, although fundamentals are also providing a reason for investors to cut back their positions. Key Western markets remain slightly oversupplied and OPEC producers are talking about avoiding any deeper cuts when they meet in Vienna early in December.