Global Markets Near Highs after Rally
Global markets traded near record highs, with European markets trading higher amid new Brexit problems. The uncertainty in Brexit came after British Prime Minister Boris Johnson took a harder line on the matter.
Meanwhile, in Asia, shares were lower. China’s CSI300 slipped after the Asian country cut another short-term interest rate.
Futures for US stocks barely moved.
MSCI ‘s world index stood near record highs. So far this year, though, the index rallied nearly 23%. This year could be its best year in ten years and the fourth-best year of all time.
Stock trading has been better since recent positive news helped squash fears of a recession in the global markets.
At the same time, the “phase one” US-China trade deal has eased some of the uncertainty on the global outlook.
Also, positive economic news boosted the S&P 500, hitting a record for the fourth straight session. The index is now on track to record a 27% gain this year.
For one analyst, the markets will likely end the year “mildly positively.” Also, a survey showed that fund managers are expecting more global growth in 2020, dampening recession fears.
But Political Woes Threaten Global Markets Stock Trading
However, markets should not celebrate, yet as political worries still exist.
The US House of Representatives is voting on two articles of impeachment against US President Donald Trump.
These charges claim that Trump has abused his power and obstructed Congress for his dealings with Ukraine.
Even though few expect the Senate to force Trump out of office, the process could direct investors to the 2020 elections.
Over in Britain, too, UK Prime Minister Boris Johnson spurred fears in the markets by adopting a hard line on Brexit.
Johnson plans to use the chances of a hard Brexit to force the EU to give him a free trade deal in less than 11 months.
The threat spooked British pound traders in the global markets, pushing the currency down 1.5%. It’s also the sterling’s biggest one-day fall.
According to one analyst, Johnson’s goal was to cancel the possibility of an extension. However, what happened was that it increased the chances of a no-deal Brexit.
Elsewhere, oil prices fell from three-month highs as data showed that US crude stocks gained unexpectedly last week.
US crude lost 0.6% to $60.55 per barrel. Brent crude futures dropped 0.4% to $65.63.
