Rolling coverage of the latest economic and financial news
- Intro: Chinese factory revival continues
- China’s industrial profits up 19% in August
- FTSE 100 jumps 1%
- Bank of England rate setter backs negative interest rates
The jump in Chinese factory profits has helped all the major European markets bounce back this morning.
The Europe-wide Stoxx 600 index has jumped by 1.5%, after hitting a three-month low on Friday night after its worst week since June.
Sterling has risen against other major currencies this morning, as a crucial week of Brexit deal talks begins.
The pound has hit its highest level against the euro in over a week, at €1.1003, and is also up 0.5% against the US dollar at $1.28.
The last scheduled talks between the UK and Europe start this week and if there is to be an agreement by 15th October, then positive breakthrough should happen before end of the week.
We are hopeful that a last minute deal would be reached, but the negotiations have become complicated following the recent UK Internal Markets bill, which is likely in breach of international law.