Summary:
- Stock markets begin the week moving higher
- Apple rises on leaked new iPhone
- Bitcoin slides on more Chinese hostility
- Results from elections in Norway and UK government vote to watch going forward
The European equity markets have begun the new week with upbeat spirits which is a consequence of softer losses coming from the hurricane Irma. Moreover, North Korea decided not to launch its ballistic missile which strengthened demand for riskier assets. It’s worth underlining that the DE30 is being shored up mainly on the back of stellar performance of European insurers which are benefiting from softer than expected Irma losses.
The general risk-on mood seen across the markets today has contributed to the rise seen in the US500, with Wall Street enjoying a strong first few hours of trade this afternoon. Another factor boosting the leading US stock index is the strong performance seen in Apple’s stock ahead of the opening bell. The US500 gapped higher on the re-open last night and has moved higher since.
It seemed that the end of the last week would be calm however, the Chinese watchdog weighed in once again which saw a hefty sell-off across all major virtual currencies. A report claimed that Chinese regulators ordered the nation’s digital exchanges to close. That was the second blow to the $150 billion cryptocurrencies market after the PBoC declared initial coin offerings (ICOs) illegal.
The Norwegian election is widely expected to be very close, with many experts believing the race for the next prime minister is too close to call. The two front runners are Erna Solberg, the incumbent Conservative prime minister and her Labour rival, Jonas Gahr Store. Voting opens at 9am local (8am BST) local time and will close at 9pm (8pm BST).
Shortly after midnight Britain’s parliament is expected to vote on whether the coalition government should have the power to transfer all existing EU legislation into domestic UK law from the day after Brexit. The bill is a cornerstone of Theresa May’s plans to ensure a smooth Brexit, and the prime minister is hopeful that the bill will pass at what will be the second reading.