{"id":12251,"date":"2020-10-14T09:53:19","date_gmt":"2020-10-14T09:53:19","guid":{"rendered":"https:\/\/errante.net\/brexit-moment-of-truth-trading-analysis-14th-october-2020\/"},"modified":"2020-10-14T09:53:19","modified_gmt":"2020-10-14T09:53:19","slug":"brexit-moment-of-truth-trading-analysis-14th-october-2020","status":"publish","type":"post","link":"https:\/\/errante.net\/hi\/brexit-moment-of-truth-trading-analysis-14th-october-2020\/","title":{"rendered":"Brexit Moment of Truth Trading Analysis \u2013 14th October 2020"},"content":{"rendered":"\n

Today\u2019s Market Outlook<\/strong>\u00a0<\/h2>\n\n\n\n

Stock markets were mixed on Wednesday, as strong corporate earnings and new devices from Apple failed to distract from the worsening picture on COVID-19 and US stimulus talks. <\/p>\n\n\n\n

European stock markets mostly opened near flat on Wednesday morning, following a global slump for equities on Tuesday. <\/p>\n\n\n\n

Markets around the world had\u202ffallen on Tuesday<\/a>\u202fafter two COVID-19 vaccine trials were paused. Sentiment was also hit by a lack of progress in US stimulus talks and rising COVID-19 cases around the world, which has led to increased restrictions across Europe. <\/p>\n\n\n\n

Michael Hewson, chief market analyst at CMC Markets, said on Wednesday morning there was a \u201csombre mood\u201d among investors. <\/p>\n\n\n\n

The DAX (^GDAXI<\/a>) was up 0.1% in Frankfurt and the CAC 40 (^FCHI<\/a>) was flat in Paris after an hour of trade. <\/p>\n\n\n\n

The FTSE 100 (^FTSE<\/a>) was up 0.4% in London. The index was boosted by pressure on the pound. Around 70% of company earnings on the index are derived in dollars, so a weak pound makes their share prices look more attractive. <\/p>\n\n\n\n

Sterling lost ground against the dollar and the euro on Wednesday, as investor jitters grew ahead of UK prime minister Boris Johnson\u2019s deadline for progress in Brexit trade talks. <\/p>\n\n\n\n

Johnson has previously said this Thursday (15 October) marks the latest date for an agreement on a UK-EU trade deal, for it to be signed off and put into place by the start of next year<\/a>. EU leaders are due to meet in Brussels on Thursday. <\/p>\n\n\n\n

The UK government has threatened to walk away from talks if no agreement is reached, paving the way for Britain to crash out of the EU\u2019s single market and customs union without a deal on 31 December. Economists expect short-term disruption and long-term damage to the UK economy if Britain severs its close trade ties with the bloc. <\/p>\n\n\n\n

The Prime Minister is due to hold talks with European Commission president Ursula von der\u00a0Leyen\u00a0on Wednesday, discussing the state of negotiations.\u00a0<\/p>\n\n\n\n

A Downing Street spokesman told PA Johnson still believed an agreement could be reached, but failure to do so should hold \u201cno fear<\/a>.\u201d <\/p>\n\n\n\n

Meanwhile Reuters is reporting EU officials have drawn up a draft summit decision for Thursday\u2019s meeting, saying progress is \u201cstill not sufficient<\/a>\u201d to strike a deal. It says EU leaders are expected to agree to ramp up planning for a no-deal outcome when Britain\u2019s current transition period expires. <\/p>\n\n\n\n

Issues including alignment on standards, fishing access and how disputes are resolved remain key obstacles to a deal. <\/p>\n\n\n\n

Sterling was down 0.2% against the dollar (GBPUSD=X<\/a>) in early trading on Wednesday, trading just above $1.29. It also lost 0.2% against the euro (GBPEUR=X<\/a>), with the pound selling for just under \u04041.10.\u00a0<\/p>\n\n\n\n

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Today’s High Impact Events<\/strong><\/h2>\n\n\n\n

The times below are GMT+3.\u00a0<\/p>\n\n\n\n