Boris Johnson Wins PM Election in UK
December 13th, 2019
The China and US trade deal has been a very volatile situation over the last couple months with a lot of comments that progress is being made, a deal is close etc. Here we are again as it is being reported that a phase one deal is again done, and the markets have reacted positively so far but cautious. Bloomberg is reporting that President Trump signed off on a phase one trade deal and this will avert tariffs from kicking in on Sunday. But the White House has not confirmed this as of this writing. The Chinese media is suggesting that there still may be work to do. Again, this is a very fluid situation so stay tuned and if we can get confirmation it is done then the market should see more upside.
Yester also saw British Prime Minister Boris Johnson win the election in the UK. The market reaction so far on Johnson victory has been positive as the pound traded higher and the FTSE 250 index climbed to a record.
The International Energy Agency (IEA) in a monthly report said that they expect a rise in world oil inventories despite the OPEC+ additional cuts. However, the IEA also lowered oil output growth forecast for the US and other non-OPEC producers for 2020. They do not see the supply and demand balance until Q3 2020.
Traders will be focused on the trade deal looking for any confirmation. Of course, the proof will be a couple month away to see if the parties really do respond as is lined out in the agreement. This situation has the potential to be with us for several more month will no clear-cut clarity. This deal continues to be a very large deal with respect to what the global economy does, and with-it energy demand and the market might be in for more of a choppy ride over the next few months.