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Market Sentiment at the Beginning of the European Session: Equity-Long; GBP-Short
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Loading...Expectations that the European Central Bank and Federal Reserve will cut interest rates boosted stocks globally, while the pound sagged on worries that likely new prime minister Boris Johnson would lead Britain into a no-deal exit from the European Union.
In early European trade, pan-region Euro Stoxx 50 futures rose 0.46% while German DAX futures climbed 0.57% and FTSE futures 0.40%.
European stocks had also nudged higher the day before with the European Central Bank seen cutting rates by 10 basis points.
It is going to take a bold stroke by the ECB to both satisfy markets clamoring for incremental easing and make a difference to the economy, all the while remaining inside its institutional setting and not destabilizing the financial system.
Sterling was under pressure due to the likelihood that Britain's ruling Conservative party would elect euroskeptic Johnson as its new leader and prime minister, replacing Theresa May. The result of the weeks-long internal party election will be announced on Tuesday.
Some investors are worried Johnson could pull Britain out of the European Union on Oct. 31 without a trade deal in place in order to appease hardline anti-EU members of his Conservative Party.
Trader Georgi Bozhidarov Read more:
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