Global stocks mostly higher…China says it’s agreed with US to gradually cancel tariff hikes…Bank of England set to hold rates ahead of UK election
BANGKOK (AP) – Global stocks are mostly higher today after a Chinese Commerce Ministry official said Beijing and Washington had agreed to gradually ease tariffs on each other’s exports as they reach agreement in trade negotiations. In early trading, Germany’s DAX rose 0.7% and France’s CAC 40 gained 0.2%. London’s FTSE 100 rose 0.1%. Wall Street is expected to open high with Dow futures up 0.5% and S&P futures up 0.4%.
BEIJING (AP) – China’s Commerce Ministry says Washington and Beijing have agreed to gradually cancel tariff hikes as their trade negotiations progress. A Commerce Ministry spokesman says envoys had “agreed to a phased cancellation of tariff increases depending on the progress of negotiations.” If both sides reach a first phase agreement, then based on that deal they will cancel already imposed tariffs proportionately.
LONDON (AP) – The European Union’s executive branch has cut its growth forecasts for the 19-country eurozone for this year and next and warns that conditions could worsen in the face of an array of uncertainties. The European Commission says the single currency bloc is expected to grow 1.1% this year, down 0.1 percentage point from the previous forecast. Next year, growth is expected to be 0.2 percentage point lower than previously estimated 1.2%. Growth in 2021 is also forecast at 1.2%.
LONDON (AP) – The Bank of England is set to keep its main interest rate on hold at 0.75% as it awaits more clarity over Britain’s departure from the European Union. The central bank’s Monetary Policy Committee has been reluctant to move interest rates for over a year given the huge uncertainty surrounding Brexit. Britain’s general election on Dec. 12 has the potential to affect the outcome of Brexit.
TOKYO (AP) – Japan’s top automaker Toyota says its net profit edged 1% higher in July-September as vehicle sales grew around the world. Toyota’s profit for the second fiscal quarter totaled 592 billion yen ($5.4 billion), up from 585 billion yen last year. Toyota, which makes the Prius hybrid, Corolla subcompact and Lexus luxury models, stuck to its net profit forecast for the fiscal year through March 2020, at 2.15 trillion yen ($20 billion). That would be an improvement over the 1.88 trillion yen earned in the year ended in March.