Federal Reserve dovishness on interest rates has prompted the euro to break out of a downtrend against the US dollar. The euro looks capable of gaining further but might meet resistance at the 200-day moving average, technical analyst Blake Morrow writes.
Morgan Stanley had the most commodity revenue among the 12 largest investment banks during 2018, followed by JPMorgan Chase, with Citigroup and Goldman Sachs sharing third place, according to Coalition data. Revenue from commodity trading, derivatives sales and other activities at all 12 banks increased 45% compared with 2017, reaching $3.6 billion.
UK Prime Minister Theresa May says "political games" played by Parliament have forced her to request a three-month delay of Brexit. She has suggested she would rather resign than request a longer postponement, and some members of her party say she should step down immediately.
A concern of UK financial firms is the possibility that a no-deal Brexit forces assets to shift to venues with less liquidity from markets where they trade. The problem is avoidable if the UK and the EU deem each other's trading venues equivalent, but that hasn't happened.
An EY tracker indicates the UK financial sector is moving £1 trillion in assets to the EU to prepare for Brexit, up from a January estimate of £800 billion. "Continued uncertainty will undoubtedly lead to more assets and people being transferred from the UK and not necessarily to the EU," says Omar Ali, UK financial-services leader at EY.
European exchanges are lobbying EU officials to change rules governing access to the $1.5 trillion-a-day market for exchange-traded derivatives. Markus Ferber, one of the lawmakers behind the revised Markets in Financial Instruments Directive, is urging the European Commission to "check very carefully if the 'open access' provisions will indeed work as intended" after Brexit.
The UK Financial Conduct Authority and the Bank of England have reached an accord with the European Banking Authority to continue cooperation and information sharing if a no-deal Brexit occurs. The BoE and the FCA say bilateral memorandums of understanding "allow uninterrupted information sharing and supervisory cooperation in the event of a no-deal scenario".
Even if the US and China reach a trade agreement, US tariffs on $250 billion in Chinese products will not be lifted immediately, President Donald Trump says. The tariffs could remain "for a substantial period of time", he says.
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