US stocks rally on Huawei reprieve as pound gyrates on Brexit news




The pound swung around on the latest Brexit drama
The pound swung around on the latest Brexit drama  

Global stocks rallied Tuesday as the United States took a step away from imposing crushing restrictions on Chinese telecom company Huawei, while the pound gyrated on fresh Brexit drama.

Wall Street stocks gained ground following two straight losing sessions, with tech companies leading after the US Commerce Department announced it would delay implementation of a ban on Huawei for 90 days to allow companies to adjust their operations and avoid sudden disruption.

Nate Thooft, senior portfolio manager of Manulife Asset Management, said Huawei seems to be a "bargaining chip" in the broader US-China trade talks, raising concerns China could respond by targeting US tech companies.

Many analysts expect more volatility in markets ahead.

"We don't know what's going to happen on trade," Thooft said.

"Our baseline remains the view that basically there is going to be a trade deal. But the timeline is very questionable on when it's going to happen."

After falling on Monday, large tech companies such as Apple and Google parent Alphabet pushed higher, lifting the Nasdaq by 1.1 percent.

European bourses also rallied with the United States, while Asian markets were mixed.

The pound, meanwhile initially shot higher in anticipation of British Prime Minister Theresa May's latest Brexit announcement.

May, who has already said she will leave office next month, promised to give lawmakers a chance to set a confirmatory referendum on whatever version of Brexit they end up approving in the weeks or months to come.

But the pound later pulled back after critics attacked it as a rehash of earlier May efforts that have made little headway politically.

"The market was all geared up to hear something new," said Boris Schlossberg of BK Asset Management, adding said May's decision to link a second vote to her Brexit plan meant the announcement was a "warmed-over" version of a rejected idea.

"There was definitely a misreading of the headline first from the market," said Erik Nelson, a currency strategist at Wells Fargo.

"It seems that nothing has really changed with regards to Brexit and it is more likely today than it did yesterday that Prime Minister may well fail."

- Key figures at 2100 GMT -

New York - Dow: UP 0.8 percent at 25,877.33 (close)

New York - S&P 500: UP 0.9 percent at 2,864.36 (close)

New York - Nasdaq: UP 1.1 percent at 7,785.72 (close)

London - FTSE 100: UP 0.3 percent at 7,328.92 (close)

Frankfurt - DAX 30: UP 0.9 percent at 12,143.47 (close)

Paris - CAC 40: UP 0.5 percent at 5,385.46 (close)

EURO STOXX 50: UP 0.5 percent at 3,386.51 (close)

Tokyo - Nikkei 225: DOWN 0.1 percent at 21,272.45 (close)

Hong Kong - Hang Seng: DOWN 0.5 percent at 27,657.24 (close)

Shanghai - Composite: UP 1.2 percent at 2,905.97 (close)

Pound/dollar: DOWN at $1.2706 from $1.2726 at 2100 GMT

Euro/pound: UP at 87.84 pence from 87.76

Euro/dollar: DOWN $1.1161 from $1.1166

Dollar/yen: UP at 110.50 yen from 110.06 yen

Oil - Brent Crude: UP 21 cents at $72.18 per barrel

Oil - West Texas Intermediate: DOWN 11 cents at $62.99 per barrel

burs-jmb/dg

COMMENTS

More Related News

China prepared for long trade fight with the U.S. - party journal
China prepared for long trade fight with the U.S. - party journal

The United States has underestimated the Chinese people's will to fight a trade war and Beijing is prepared for a long economic battle, an influential Chinese Communist Party journal said on Sunday. China would not give way on major principles in its negotiations with the United States on ending the dispute, the commentary in the ideological journal Qiushi, or Seeking Truth, said. The editorial represented "a further mobilisation of Chinese society" in the struggle against U.S. trade pressure, wrote Hu Xijin, editor-in-chief of the state-run Global Times newspaper, in a tweet.

More dogs are getting sick as climate changes pushes diseases into new parts of the US
More dogs are getting sick as climate changes pushes diseases into new parts of the US

From heartworms to Rocky Mountain Spotted Fever to Lyme disease, climate change means more dogs are getting sick.

Iran tanker attack: Donald Trump, Mike Pompeo should follow Ronald Reagan's lead
Iran tanker attack: Donald Trump, Mike Pompeo should follow Ronald Reagan's lead

During the Iran-Iraq war in the 1980s, the Reagan administration faced off a spate of tanker attacks with targeted military force and smart diplomacy.

Iran not seeking war with US, sending warning: analysts
Iran not seeking war with US, sending warning: analysts

Amid an intensifying war of words following dual tanker attacks in the Gulf, Iran is not seeking open conflict with the United States but is sending a warning to Washington, analysts say. Tensions around the Gulf shipping channel, vital to the transportation of crude, soared after two tankers came under attack early Thursday, with the US quickly blaming Iran for the incidents. "(Iranian supreme leader Ayatollah Ali) Khamenei and the Iranian Revolutionary Guard Corps are rational actors -- despite how some portray them -- and they will not want, unduly, to invite Iran's annihilation," said Middle East analyst and author Neil Partrick.

Huawei
Huawei's Android replacement is one step closer to becoming a reality

Huawei is getting closer, it seems, to the day when it will begin relying on a Plan B mobile operating system to replace the reliance it's enjoyed up to this point on Google's Android, which the Chinese consumer electronics giant is in danger of losing access to soon thanks to US sanctions.As far as what form Huawei's back-up OS will take, when it will roll out and where -- those details are still a bit sketchy. However, the company has begun trademarking its "Hongmeng" operating system in at least nine countries, as well as Europe, which could be read as a sign that plans for the company's much-speculated-about Android replacement are starting to firm up.That news comes via...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Latin America

facebook
Hit "Like"
Don't miss any important news
Thanks, you don't need to show me this anymore.