EncoreFX’s daily market updates are written by our experienced and professional dealing team.
US Sets Hard Deadline for China | UK Economy Loses Steam
Published December 10, 2018
US-China trade negotiations need to reach a successful end by March 1 or new tariffs will be imposed, said US trade representative Robert Lighthizer, clarifying that there is a hard deadline after a week of confusion among administration advisers.
Growth in the UK’s economy has slowed as car sales fell and the manufacturing sector stalled. The economy grew by 0.4% in the three months to October, slower than the 0.6% in the three months to September. The UK’s trade deficit also widened as imports grew faster than exports in October.
The St. Louis Federal Reserve Bank’s president, James Bullard, reiterated his call for the Fed to pause its current cycle of interest rate increases, saying the central bank may already be restricting the economy. Bullard estimated that the neutral rate of interest is around 2 percent, as compared to the Fed’s current policy rate which is between 2 and 2.25 percent.
Oil prices fell in line with further declines in global stock markets, erasing the gains made last week when producer group OPEC and other key exporters agreed to cut their crude output from January. WTI crude prices have hit a low of $51.51.