Markets move higher as Japanese growth beats forecasts – business live

President Trump has problems everywhere – from the tensions with North Korea to the death of a woman at a weekend anti-racism rally – and his economic plans could also be in trouble.

That’s the view of S&P Global ratings, which says Trump could struggle to meet economic growth targets. In a new report it says:

After the failure of the Republican plan to “repeal and replace” the Affordable Care Act, S&P Global Ratings believes the prospects for the administration to work with lawmakers to enact its promised pro-growth plans are, in a word, dim, said an article published today, titled “The Departed: Can U.S. Lawmakers Spur GDP Growth When They Return?.”

“We no longer believe the federal government will be able to push through even a small infrastructure-spending package–much less the $1 trillion the White House has suggested,” said U.S. Chief Economist Beth Ann Bovino.

As expected, shares are moving ahead in early trading as some of the volatility of the past week eases.

The FTSE 100 is up 0.25%, with Standard Life up 2% as it completes its merger with Aberdeen.

There is strong fundamental backing behind the major equity markets – with the low interest rates policies being the key catalyst – so stock traders will probably find the opportunity to re-establish their long bets at lower prices after the recent pullback.

The eurozone industrial production figures could show the effects of the recent strength of the euro. The single currency has benefitted from weakness elsewhere, particularly in the dollar, but this is causing a problem for the European Central Bank. President Mario Draghi is under pressure to begin easing the central bank’s quantitative easing and low interest rate policy, but a stronger euro makes that more tricky. Commenting on today’s expected data, Dave Madden at CMC Markets said:

The consensus is for a reading of -0.4% and 2.9% on a month-on-month basis and on a year-on-year basis respectively. The relative strength of the euro is hitting the region, and traders want to see if that is still the case.

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

After last week’s market turmoil in the wake of growing tensions and belligerent rhetoric between North Korea and the US, the week looks like starting on a calmer note. As Kathleen Brooks at City Index put it:

The fact that we didn’t see an escalation in the rhetoric from either side over the weekend could be enough to trigger a recovery after last week’s risk selloff, and keep the markets focused on the economic fundamentals.

That makes Japan the fastest growing economy in the G7 this quarter by our reckoning and may re-start the chatter about the Bank of Japan’s eventual QQE [Qualitative Monetary Easing] exit strategy….

This was not one of those flukey one-offs that was caused by a surge in inventories that will be worked down in coming quarters, or one of those random spikes caused by exports and imports growing out of synch.

Our European opening calls:$FTSE 7321 +0.15%
$DAX 12044 +0.25%
$CAC 5071 +0.20%$IBEX 10299 +0.16%$MIB 21420 +0.31%

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Read the original at Economics | The Guardian.