Pound jumps as Barnier says Brexit deal “possible” | Calamatta Cuschieri

Market summary

Maltese market closed in red on Monday, with MSE total index ending the session 0.743% lower to 9,833.098 points. Best performer was MIDI plc, it jumped 0.72% to close at 0.695. Biggest fall, of 2.96% was seen from HSBC Bank Malta plc with closing price of 1.31. Followed by Malta International Airport plc with 1.96% drop to 7.50 and 0.93% shed of Mapfre Middlesea plc which closed at 2.12. In red also ended up Bank of Valletta plc and International Hotel Investment, with the loss of 0.89% and 0.65% to close at 1.11 and 0.77 respectively.

European stocks were lower on Monday as investors grew skeptical about the progress made in Sino-US trade relations, while weak Chinese data highlighted the impact of tariffs. By the end of trading, the Stoxx 600 was down 0.52% at 389.58, the German Dax fell 0.20% to 12,486.56 and France's CAC 40 was 0.40% lower at 5,643.08. London's FTSE 100 was 0.46% lower at 7,213.45.

US stocks closed slightly on Monday following a report that revealed China wanted to hold further discussions with the US before signing Donald Trump's so-called "phase one" trade deal. At the close, the Dow Jones Industrial Average was down 0.11% at 26,787.36, while the S&P 500 was down 0.14% at 2,966.15 and the Nasdaq Composite saw out the session 0.10% weaker at 8,048.65.

Sterling jumps after EU's Barnier says Brexit deal possible this week.

In London sterling jumped and hit a five-month high versus the euro after the European Union's chief Brexit negotiator said a deal with Britain over the terms of their divorce was still possible this week.

The pound rose as much as 0.7% to USD 1.2699 and by a similar magnitude against the euro to 86.90 pence after Michel Barnier said a deal was still possible.

Sterling came off those highs after Barnier said a deal, while achievable this week, was more and more difficult.

The British currency has enjoyed a huge rally since late last week, when London and Brussels said they would restart intense negotiations to try and agree a Brexit deal before Britain's scheduled departure date of Oct. 31

 

This article was issued by Nadiia Grech, Junior Trader at Calamatta Cuschieri. For more information visit, https://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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