Markets moved by hopes on trade

The US and China finally kicked off their longawaited latest round of trade talks yesterday and analysts watched on nervously for any signs of white smoke.

Discussions took place after markets in Europe had closed and most countries saw gentle rises as hopes of a decent outcome spread like a virus.

As a result, the FTSE 100 closed the day up slightly, rising 19.86 points – or 0.28% – to 7,186.36, although it traded down throughout the morning.

In Europe, the French CAC closed up 1.27% and the German DAX rose 0.58%.

The FTSE could have risen higher but was stunted by a strong pound rising 1.45% against the dollar at

“The pound was also boosted by decent GDP figures”

1.2384, with traders feeling more confident that a Brexit extension or a deal is on the way.

The pound was also boosted by decent GDP figures suggesting the UK will avoid a recession.

Against the euro the pound was up 10.2% at 1.1239.

A barrel of Brent Crude also saw a jump in price, with a barrel up 0.9% to 58.82 dollars, as Turkey’s military invasion of Syria unnerved investors over the impact on global supply.

In company news, fashion retailer N Brown revealed a return to profit in its first half as an online push starts to pay off.

The group behind brands Simply Be, Jacamo and JD Williams saw shares leap 7% higher, up 7p to 107p, as it posted pre-tax profits of £18.8 million for the six months to August 31, against losses of £27.1 million a year ago. Revenues dropped 5.4% to £432.9 million.