Gloom de­scends on Europe as G20 min­is­ters pon­der US tar­iff threat

Dol­lar has choppy ses­sion ahead of Fed of­fi­cials’ speeches, while ster­ling slips as UK pre­pares to trig­ger Brexit process

Financial Times Middle East - - Markets & Investing - DAVE SHELLOCK

ex­pected, but stuck to its fore­casts re­gard­ing the pace of fu­ture tight­en­ing.

A num­ber of Fed pol­i­cy­mak­ers are due to speak this week — in­clud­ing Janet Yellen,chairoftheUS­cen­tral­bank.

“While it would be nat­u­ral to as­sume that Ms Yellen’s ap­pear­ance should be the one car­ry­ing the most weight, we are very doubt­ful that her re­marks will be use­ful to mar­kets,” said An­thony Kary­dakis, chief eco­nomic strate­gist at Miller Tabak.

“She al­ready had am­ple time just a few days ago to ex­plain her thoughts on the eco­nomic land­scape at con­sid­er­able length and share with mar­kets her — and the Fed­eral Open Mar­ket Com­mit­tee’s — way of ap­proach­ing mone­tary pol­icy ahead.

“It would be safe to as­sume that she has noth­ing new to add just a week later in the con­text of a generic key­note ad­dress at a Fed-spon­sored con­fer­ence onCom­mu­ni­tyDevel­op­men­tre­search.”

Mean­while, ster­ling slipped 0.4 per cent against the dol­lar to $1.2342 — and 0.4per­centver­sus­theeu­roto€1.1495— af­ter news that Theresa May, UK prime min­is­ter, would trig­ger the two-year Ar­ti­cle50EUex­it­pro­cess­nex­tweek.

“Un­til now, we can re­gard the UK econ­omy and pol­i­tics as hav­ing en­joyed a hon­ey­moon pe­riod fol­low­ing the June ref­er­en­dum on EU mem­ber­ship last year,” said Divyang Shah, global strate­gis­tatIFRMar­kets.

“Once Ar­ti­cle 50 is trig­gered, the hard task be­gins as the EU and UK gather around the ne­go­ti­at­ing table and divorce pro­ceed­ings be­gin.”

The yield on the 10-year UK gov­ern­ment bond — which moves in­versely to its price — fell 2bp to 1.23 per cent while that on the equiv­a­lent-du­ra­tion US Trea­sury­was­down2ba­sis­pointsat2.48 per cent. The two-year US yield was also 2bplow­erat1.30per­cent.

Gold ex­tended its run of gains to a fourth day as the metal rose $5 to a twoweekhighof1,233anounce. Change on day

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