Global equities market react negatively to news that the U.S. and China has hit an impasse on whether the U.S. should roll back the existing tariffs that have been imposed or cancel the planned tariffs that are to take effect on 15 Dec.
European and Asian stock markets both slipped on Wednesday, holding the markets from having the record run of the recent sessions. Hong Kong’s Hang Seng fell more than 1.8% while losses in Europe were caused by bank stocks, which slumped 2.1%. Poor corporate earnings drove the move down; ABN Amro reported a 24% decline in Q3 profits and shares shed 5.3%.
UK inflation fell to the lowest level in three years with consumer prices rising 1.5%, lower than the forecast of 1.6%. The latest reading shows that the inflation rate is moving away from the Bank of England’s target 2% rate in the medium term, which increases somewhat the odds of a further rate cut–although many analysts expect the bank to keep the rate unchanged given the worst part of the global economic slowdown appears to have passed.
Separately the ONS reported that house prices nudged up by 1.3% in September, essentially remaining unchanged from August. Despite the increase, London continues to be heading in the opposite direction as house prices there actually fell 0.4% YoY.