"That comes despite widespread optimism over US-China trade negotiations, which signal the potential for a breakthrough ahead of Trump's meeting with Xi later in the week. In Europe, this morning has seen a German Ifo business climate survey that brought an improved headline figure of 88.4, while the expectations metric rose to the highest level since Feb 2022. However, despite optimism over future business conditions, the worsening of current conditions (85.3) highlights a perception of a struggling economy that many hope will get better."
"Weekend talks between US-Chinese negotiators appears to have resulted in a significant breakthrough, with US Treasury Secretary Scott Bessent announcing that a "substantial framework" had been agreed upon, covering a wide range of issues, including, export controls, tariff suspensions, fentanyl-related tariffs, and agricultural trade. With the Trump-Xi meeting always likely to be a result of significant groundwork being made by their negotiating teams, there is an optimism that the two leaders can strike a more conciliatory tone than had been seen over recent weeks."
European trading opened mixed with little directional bias relative to Friday's close. German Ifo business climate rose to 88.4, with the expectations metric at its highest since February 2022 while current conditions fell to 85.3, indicating a struggling economy despite brighter outlooks. UK commodity and precious metals declines weighed on the FTSE 100, driving Fresnillo and Endeavour lower. US-China weekend negotiators agreed a "substantial framework" covering export controls, tariff suspensions, fentanyl-related tariffs, and agricultural trade, and reopening rare earth trade should boost tech stocks with Nasdaq futures up about 1.3%. Softer US inflation (0.3%) raises odds of Fed cuts this week and later months.
Read at London Business News | Londonlovesbusiness.com
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