The month of September started with a downward sentiment regarding news, this is because of the weekend data from China, today from other Asian countries and Europe reinforce the idea that the world economy is on its way to a recession. In addition, the new US-China customs tariffs have entered into force, a situation which is likely to further undermine the economic behaviour of the world’s two largest economic engines, and Europe now appears resigned to a period of contraction.
The news from London were not positive either, as Boris Johnson’s rhetoric worsened over those who in his party opposed the UK’s exit from the European Union on 31 October, supporting legislation that is being prepared to force a postponement until 31 January 2019. This uncertainty weighed on the British Pound, which fell by -0.7% to 1.2067, giving the Footsie a strong boost to over 1%, with the best performance of the day between the European markets.
