FTSE 100 trades 0.02% lower at 7,165 as confusing Brexit headlines crossing the wires. GBPUSD is trading 0.26% higher at 1.2236 trapped in narrow trading range. Equity investors are cautious ahead of this today’s trade talks between China and US. The negotiations are starting later today, ahead of an increase in U.S. tariffs on $250 billion worth of Chinese imports, to 30% from 25% on 15th October 2019. The tone of trade improved earlier, driven by better headlines saying that China is prepared to negotiate a partial trade deal in the meeting. Last week the U.S. Government announced tariffs on $7.5 billion worth of European exports from cheese to whisky.
Weak macro data released earlier; the United Kingdom Gross Domestic Product (month over month) came negative at -0.1% below forecasts of 0% in August. The UK Manufacturing Production (month over month) came in at -0.7% below expectations of 0% in August.
In its financial policy committee meeting minutes released yesterday the Bank of England (BOE) said that UK financial system is prepeared for Brexit. Brexit uncertainties weighing on UK economy and US-China trade tensions pose biggest near-term risk to global economy.