FTSE edges higher as U.S.-China trade talks enter critical phase

The FTSE index has started the week in positive territory. In the North American trade, the FTSE is trading at 7,452, up 0.32% on the day. On the release front, the U.K. releases GfK Consumer Confidence, which has been mired in negative territory. The indicator is projected to tick upwards to -12 points.

Is a U.S-China trade deal around the corner? Negotiations will continue on April 30, in Beijing, and U.S. Treasury Secretary Mnuchin waxed positive on Sunday, saying that the talks were in their “final laps”. However, Mnuchin cautioned that the talks could still end without an agreement. The nasty trade war between the two largest economies in the world has rocked the global economy and curbed growth. If the sides continue to make progress, there could be a summit between President Trump and President Xi of China. A new trade agreement between the U.S. and China would likely see investor risk appetite soar and boost equity markets.

The FTSE continues to gain ground, despite the chaos surrounding Brexit and weak construction and services PMIs. The blue-chip index soared 8.0% in the first quarter and hasn’t missed a beat in April, gaining 2.1%. Despite the turmoil surrounding Brexit and the lingering uncertainty over Britain’s imminent departure from the EU, investor confidence remains high. The British economy has generally performed well, although there are constant concerns that a no-deal Brexit could send the British economy reeling.

Dodging the information avalanche

A massive week for currencies, stocks and bonds

Economic Calendar

Monday (April 29)

  • 19:01 GfK Consumer Confidence. Estimate -12

*All release times are DST

*Key events are in bold

FTSE, Monday, April 29 at 10:45 DST

Previous Close: 7,428 Open: 7,438 High: 7,456 Low: 7,405 Close: 7,452

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher

Currency Analyst at Market Pulse
Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.