Erdogan meets Putin – Hope for the Middle East | Calamatta Cuschieri

Markets summary with majority of Equity markets in Europe flat to lower, Pound gains to highest versus dollar since end-July and Erdogan to meet Putin.

Erdogan’s upcoming meeting with Vladimir Putin in Sochi will bring
Erdogan’s upcoming meeting with Vladimir Putin in Sochi will bring

The majority of Equity markets in Europe finished the trading session flat to lower, as trade tensions between Washington and Beijing continue with conflicting messages. Over the weekend, it was reported that United States President Donald Trump plans to announce new tariffs of about $200 billion worth of Chinese products as early as later today, while a new round of trade talks is in the works. A report emerged today that Beijing plans to halt the new talks if Trump proceeds with new tariffs. Meanwhile, the Eurostat said earlier in the day that euro area inflation stood at slightly lower 2% in August.

The DAX lost 0.18% at the closing bell. Chemicals led the losses, with Linde and Henkel going down 2.49% and 2.36%, respectively. The FTSE 100 ended today's session 0.06% in the red. Gambling operator GVC Holdings fell 3.35%. The CAC 40 was flat at the close. STMicroelectronics was the worst performer losing 2.11%, while IT services corporation Atos outperformed all others, adding 2.48%.

Pound gains to highest versus dollar since end-July

Helped by a broad decline in the dollar, the British currency posted substantial gains. The Brexit concerns partly eased on speculation in the media that the government in London made a breakthrough in the talks with the European Union about a so-called backstop for the future border in Ireland. The administration in Brussels acknowledged there was progress in the process, but still insisted there is no deal until all disputes are overcome.

The pound was still little changed compared to the euro as the level support for Prime Minister Theresa May within her cabinet and the Conservative Party was uncertain. She has stuck with the negotiation platform adopted in her Chequers residence and warned the only alternative may turn out to be a withdrawal from the EU without any arrangement.

Erdogan to meet Putin

Turkish President Recep Tayyip Erdogan stated, that his upcoming meeting with Russian President Vladimir Putin in Sochi will bring "new hope" to the war-torn Middle East region. Speaking to the reporters ahead of the meeting focused on the situation in Syria, Erdogan announced that a joint statement will be made after the talks conclude.

"Exchanging views on political, military, economic issues will strengthen Turkey and Russia," Erdogan commented on the current relations between his country and Russia. At the same time, Putin said that Turkey-Russia ties are improving in terms of regional security and international politics, while also hailing the growing trade exchange between the two countries.

The meeting between Erdogan and Putin in Sochi comes ahead of the crucial offensive by the Russian-backed Syrian government forces in Idlib, the last area in the country controlled by various rebel factions, some of which are supported by Ankara. Kremlin stated earlier today that high-level discussions are needed in order to approach the issue of the expected offensive in Idlib, while Erdogan said that his country is strengthening its military positions in Syria's last rebel-held region in an effort to prevent civilian casualties.

 

Disclaimer: This article was issued by Rodrick Duca, trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article are being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.

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