Global shares fell today after weaker-than-expected economic surveys fuelled investor concerns over the escalating US-China trade war and its effects on the world economy.
The bank’s Monetary Policy Committee (MPC) voted unanimously today to keep rates unchanged, warning that “entrenched uncertainty” around Brexit could drag on the UK economy.
Official data showed that prices of good and services, paid by consumers, only increased at an annual rate of 1.17% last month. According to a Reuters poll of economists, it was estimated to hit a rate of 1.9%.
The pound fell from its six-week highs against the dollar today as PM Johnson continues with his pledge of taking Britain out of the EU by October 31st.
Concerns over the economic decline from the ongoing US-China dispute in addition to a looming ‘no-deal’ Brexit, which will most likely happen, resulted in less ‘risky’ trade decisions for investors.
Overnight, China’s yuan sunk to a new 11 and a half-year low, reaching its worst month on record, following fears that the economy is suffering from an intensifying US-China trade war.
Asian and Australian shares dived on Monday amid a new bout of the US-China slugfest that has been dominating the markets in recent months.
In early trading in Europe today, the dollar climbed higher amid a generally steady and quiet market as the focus now shifts to Fed Chair Jerome Powell’s speech.
The euro climbed slightly after data released from the eurozone private sector data boosted hopes that a recession could be avoided in the bloc’s economy.
In early trading today, the dollar held strong against the euro, which hovered around a two-week low, as slightly higher…