Asian shares are mostly higher this morning but the trade talks continue to serve as a headwind for the markets as no news continues to unnerve the markets.
The stand out performer of the Asian markets was once again the Shanghai Composite which saw gains of 1.2%. Weaker than expected loan and money supply data provided the market some hope that further action may be taken to spur the economy back into life. Personally I also think that the longer the trade talks drag, whilst both parties are desperate for a solution there is an indication that the Chinese are playing their cards well at the negotiating table and possibly the deal may not be as ‘complete’ as the US authorities are striving for.
The S+P 500 had its worst weekly showing on Friday as a weak jobs report on Friday indicated that there were further signs of slowdown in the United States. A further delay of the Trump/Xi talks will likely exacerbate this decline.
A vote on Brexit will hold the key for sterling and the FTSE this week. If the first vote on Tuesday is defeated, a second vote is anticipated for Thursday. Defeat on Tuesday may be followed by a surprise passage through the House on Thursday.