🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

Easing hopes prop up global stocks, pound sags as Britain eyes new PM

Published 2019-07-22, 08:23 p/m
© Reuters.  Easing hopes prop up global stocks, pound sags as Britain eyes new PM
EUR/USD
-
US500
-
AXJO
-
JP225
-
DX
-
LCO
-
CL
-
KS11
-
STOXX
-
MIAPJ0000PUS
-
DXY
-

* MSCI Asia-Pacific index shade higher, Nikkei adds 0.25%

* Prospect of Fed, ECB easing support global equities

* Pound sags with eurosceptic Johnson seen becoming new UK PM

* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Shinichi Saoshiro

TOKYO, July 23 (Reuters) - Expectations of policy easing by major central banks such as the Federal Reserve propped up global stocks on Tuesday, while the pound sagged as Britain braced for a new prime minister who could pave the way for a no-deal exit from the European Union.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS inched up 0.02%.

Japan's Nikkei .N225 rose 0.25%.

Australian stocks .AXJO added 0.15% and South Korea's KOSPI .KS11 gained 0.2%.

The S&P 500 .SPX edged up towards a record high overnight, supported by expectations that the Federal Reserve would cut interest rates at its July 30-31 policy meeting. .N

European stocks .STOXX had also nudged higher on Monday with the European Central Bank seen cutting rates by 10 basis points on Thursday.

But with central bank easing no longer a fresh theme, market gains were limited.

"The likelihood of easing by the Fed is supportive for equity markets, but the probability of a 25 basis point rate cut has already been factored in for the most part," said Soichiro Monji, senior strategist at Sumitomo Mitsui DS Asset Management.

In currency markets, the pound GBP=D4 was a touch lower at $1.2477 and headed for its third session of losses.

Sterling was under pressure due to the likelihood of eurosceptic Boris Johnson becoming Britain's next prime minister.

The result of Britain's weeks-long internal party election will be announced on Tuesday, with Johnson widely expected to have beaten foreign minister Jeremy Hunt. The winner will become prime minister on Wednesday. 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 members of his Conservative Party.

Other major currencies were subdued ahead of the ECB and Fed meetings.

The dollar index .DXY against a basket of six major currencies inched up 0.05% to 97.314.

The euro was steady at $1.1207 EUR= and the dollar was nearly flat at 107.895 yen.

Crude oil prices slipped, losing momentum after two days of large gains generated by heightened tensions in the Middle East.

U.S. crude futures CLc1 were down 0.2% at $56.11 per barrel after gaining 0.1% overnight on concerns over possible supply disruptions after Iran's seizure of a British tanker late last week. O/R

Brent crude LCOc1 was flat at $63.26 after rising 1.2% the previous day.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.