Analysts at ANZ Bank New Zealand explained that markets were calmer overnight after recent volatility saw a lot of short-term uncertainty about Brexit and the Italian budget priced in.
“Equities made gains on headlines that there will be further talks between the US and China.”
“At the time of writing, the S&P is up 0.3%, while the DAX finished up 1.3% and FTSE 100 was unchanged.”
“Oil weakened with WTI down 4.6%, after OPEC warned that a supply glut could emerge next year as world demand slows and non-OPEC producers raise output. Oil is at the lowest level since February and OPEC has cut its forecasts for world oil demand in 2019.”
“Sterling surged, with the UK inching closer to a Brexit deal. Fixed income was firm with the US 10-year yield down 3bps.”