This week all eyes will be on the UK

Wealth

This week all eyes will be on the UK 

Negotiators from the United Kingdom and European Union drafted a Brexit deal in last-minute talks on Thursday. Markets reacted strongly to the positive news and the pound gained significant ground against global currencies. 

Good day,

The past week markets responded to improved sentiment globally and some negative news locally. The net effect was a slightly positive return on local equity markets. 

Negotiators from the United Kingdom and European Union drafted a Brexit deal in last-minute talks on Thursday. Markets reacted strongly to the positive news and the pound gained significant ground against global currencies. At a rare Saturday sitting, members of the UK parliament voted to delay a decision on the agreement British Prime Minister Boris Johnson reached in Brussels last week until he had negotiated through parliament the legislation that would enact it. That left Johnson obliged by law to send a letter to Brussels requesting that Britain’s departure is delayed until 31 January. Next, a withdrawal agreement bill will be put before parliament withholding approval for the deal until laws enabling it are passed. That could take days, or even weeks, which deepens the uncertainty surrounding Brexit. Markets are sure to react to the news when they open on Monday. 

China wants another round of talks before signing what President Trump called the first phase of a trade deal between the two nations. While details of the additional trade talks appear unclear, it is possible they could happen before the end of October. As part of the deal proposal reached the past week, China will address intellectual property concerns raised by the United States and buy $40 billion to $50 billion worth of US agricultural products. The end of the trade wars could be in sight. 

Locally, Eskom announced a new round of load shedding that pushed the rand past the R15 to the USD mark on concerns that the local economy could face headwinds as the power producer fails to supply industry. Eskom suspended load sheading on Friday and the currency strengthened back to the same levels of a week ago. 

This week all eyes will be on the UK as the time pressure on parliament mounts. 


Kind regards,

SECURITAS – Wealth Management



























Market data provided by I-Net | News article provided by Securitas with 4D Wealth

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