European Investors To Take Cue From Positive Brexit Developments

Summary

• European investors are expected to remain optimistic over the short to medium term in light of the recent good news regarding the potential outcome of Brexit.

Their confidence in the potential to avoid a no deal British departure from the EU has grown amid reports that Northern Ireland's biggest party is finally prepared to make some concessions to the European Union. Although the claims were quickly denied, this was nevertheless interpreted as a signal that there is still some hope of a UK-EU agreement.Elsewhere, investors are anticipating a positive outcome from the October US-China trade talks, which they believe will finally bring about some sort of deal between the superpowers. And this optimism would appear justified following a fresh relaxation of trade policy from both sides. US President Donald Trump has already announced his willingness to consider a temporary trade agreement with China covering a wide scope of goods.Trump's comments came after China announced that it was exempting several categories of agricultural products (including soy beans and pork) from the list of US goods subject to tariffs.The markets received another boost in the form of a sharp uptick in oil prices. Global oil prices were up markedly following a drone attack on infrastructure belonging to KSA oil and gas company Saudi Aramco.Meanwhile, the ongoing political turmoil in Hong Kong will likely restrain European investors from stronger market activity amid fresh clashes between protesters and their opponents.