Global stocks slump but pound prospers before Brexit vote
Eurozone government bond yields tested six-month lows after weak German economic data was released, which hurt the euro
London — Spluttering noises from Germany and an earnings miss from banking giant JP Morgan dragged back stocks on Tuesday, while the pound hovered near a two-month high ahead of a crucial parliamentary vote on Brexit. Most European markets started in good spirits after attempts by Washington and Beijing to play down the risks associated with their trade war and sterling’s bizarrely positive twist on the looming Brexit drama. But things began to wobble when Germany reported its weakest growth in five years and then Wall Street futures flinched as JP Morgan blamed bond market volatility for lower-than-expected fourth quarter 2018 profits. There were still remnants of positive sentiment. Shanghai and Hong Kong stocks had gained almost 2% overnight after U.S. President Trump talked up the chances of a China trade deal and Chinese officials then came out in force hinting at more stimulus for their slowing economy. Tokyo had risen 1% on return from holiday too and Seoul ended up smartly a...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.