UK announces trade deal with Japan
The UK government continues to steal headlines as it announced its first post-Brexit trade agreement, however this was not with the EU.
It was reported that the UK and Japan have confirmed in principle a post-Brexit trade deal. This announcement comes after a week of uncertainty surrounding heated talks with the European Union.
Liz Truss, who is the UK International Trade Secretary stated, “This is a historic moment for the UK and Japan as our first major post-Brexit trade deal”
Sterling rose to 0.9192 against the Euro on the news, which was the highest level since 25th March.
U.S. consumer prices on the rise
There was some positive news for the American economy today, as it was reported that the Consumer Price Index rose last month.
The Labor Department confirmed that its CPI rose by 0.4% in August. This comes as this index also gained 0.6% in June and July, after declining March – May due to COVID-19 lockdowns. These lockdowns forced many businesses to close in order to slow the spread of the coronavirus.
The Dow Jones traded higher, at around 0.9% up. The S&P 500 climbed 0.7% and the NASDAQ was up 0.5% as of writing.
British economy continues post-lockdown recovery
There was more positive news from the UK, as it was reported that the British economy grew in July.
Data shows that the UK economy grew by 6.6% last month after falling by 20% in Q2 of 2020. The economy has recovered half of its COVID-19 losses, helped by the re-opening of the hospitality sector.
This comes as welcome news as unemployment is expected to increase due to Chancellor Rishi Sunak ruling out further extensions of his COVID-19 furlough scheme which is set to expire at the end of October.
Senior Market Analyst