Flash boursier

Key data

Highlights:

1. Global marketplaces turn the corner

2. Some US economic indicators currently blocked

Rumours of breakthrough on trade war

With the exception of China, which was more or less flat, financial marketplaces everywhere perked up last week. In Switzerland, the SMI finished almost back at its current-year high, close to the 9000 mark.

Investors are expecting an easing of trade tensions with China. If that happened, equities would obviously lurch upwards. Chinese trade authorities have indicated that they will propose a five-year plan to Washington that will increase Chinese imports by some USD 200bn annually. In addition, Steven Mnuchin (US Treasury Secretary) would reportedly support reduced tariffs on Chinese goods. Even though the rumour has since been denied by his own office, Wall Street still believes that there is no smoke without a fire.

European markets, especially the LSE, are set to continue ebbing and flowing in line with progress on Brexit. Prime Minister Theresa May will return to Parliament today to present a so-called Plan B which will allow Brexit to take place by 29 March – the official date of the UK’s department from the EU.

Over in the US, as some federal agencies have been closed for business as a result of the shutdown (which has now lasted longer than 30 days), some economic indicators have been released in recent weeks. The government shutdown could also result in the cancellation of some takeover bids and delay acquisitions planned by major technology firms such as Uber. The deal pipeline is blocked because the SEC cannot currently approve applications and probably also because the IRS cannot provide any tax advice on transactions.

This week, Wall Street will be closed today to mark Martin Luther King’s Day. The World Economic Forum (WEF), held in Davos, begins tomorrow and will run for the rest of the week. The annual meeting will play host to more than 3,000 participants, including more than 60 heads of state or government and 40 heads of international bodies.

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