FTSE and European bourses buck negative Asia trend

The FTSE is almost a full percent higher as an eclectic mix of companies all trade higher including rental equipment firm Ashtead and housebuilder Persimmon. 

Negative data from China has yet to make itself felt in the day’s trading. China’s key industrial profits, the engine of the country’s growth, showed a surprise decline in August after a solid July. For the first eight months of the year China’s industrial profits are now showing a 1.7% decline which does not bode well for the next set of GDP figures which have already been revised lower this year. 

Asian shares track US stocks lower after whistleblower complaint

Asian shares slipped across the board in overnight trade, pressured also by a drop in the US market caused by old concerns about the Sino-US trade talks and fresh worries over a whistleblower complaint against President Trump claiming he sought support from Ukraine for the 2020 election. 

The now full blown impeachment enquiry against President Trump may not actually lead to his impeachment but is creating sufficient of a disruption in Washington to distress the markets. 

BoE comment hits pound 

The pound didn’t take too well to comments from the Bank of England policymaker Michael Saunders who said that the BoE may need to cut interest rates even if Britain managed to avoid a no-deal Brexit. This was the first clear statement that the bank is considering a rate cut and the argument is not only Britain based but also reflects the weak state of global economic growth. 

US durable goods data due out later could be the next focal point for the dollar which is flat against the euro, the yen and the Canadian dollar.