The Office of the US Trade Representative (USTR) overnight confirmed that trade talks with China will continue for a third day. The news boosted investor optimism that the two superpowers will reach a resolution and Donald Trump’s 25 per cent tariffs will not come into effect on 1 March.
The US president said in a tweet that talks with China were “going very well”. Trump’s positivity boosted stock markets in Asia, with the Hang Seng Index up 2.5 per cent and European bourses set to open higher this morning.
The UK government had a major blow yesterday, 8 January as a cross-party coalition of Members of Parliament voted for an amendment to the finance bill, limiting the Treasury’s powers and allowing MPs to have more say if the UK leaves the European Union without a deal.
Meanwhile, a five-day debate on Theresa May’s Brexit withdrawal agreement starts today ahead of the meaningful vote scheduled for Tuesday, 15 January.
In the US, market participants will keep a keen eye on the minutes from the December meeting of the Federal Open Market Committee (FOMC) due for release at 19:00 (GMT). The minutes often give clues to the Federal Reserve’s monetary policy outlook and the future path for interest rates.
Fed raises interest rate, cuts growth forecasts
Brexit vote set for January as May seeks MPs’ support
Data provided by