US China trade talks continue to dominate markets
The S&P closed up 0.8% which in turn saw Asian markets respond in kind. The Hang Seng was up 0.9% while the Shanghai Composite closed up almost 2%. The FTSE opened down marginally at 0.2% off.
The question now will be how the lack of progress is received domestically – both economies are not looking as healthy as they were a year ago, and a tariff war may create new pressures as companies start losing exports.
TUI results boost shares despite travel travails
TUI saw its shares trading up in early action on the London market. TUI is operating in a tough market, with Brexit just one challenge. The technical issues surrounding Boeing’s 737 MAX airliners has grounded some 10% of TUI’s own fleet and hit profits. The travel operator reported an underlying forecast loss of EUR 300 million. It is also grappling with lower margins but is reporting increased interest in holidays in the eastern Mediterranean.
Oil market lacks direction, IEA warns of supply concerns
The oil market is focusing on the potential slow down in the Chinese economy but there are concerns about the more immediate impact of tensions between the US and Iran. The IEA has just announced that the current supply surplus could potentially flip quickly into a deficit particularly if supplies from key producers are impacted.
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