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Markets weighed down by geopolitical tensions and Brexit worries – business live


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

Global markets are subdued this morning, weighed down by worries over the global economy, rising tensions in the Middle East, and the prospect of a new UK prime minister.

Germany’s finance ministry has cast a cloud over the new week, warning that its factory sector faces tough challenges.

In a new monthly report, it said manufacturers are suffering from a slowing global economy, which is hitting demand for exports.


“Leading indicators as well as shrinking order books point to a lasting period of economic weakness in the industrial sector.”

That’s not an understatement. Earlier this month we learned that German factories had suffered their biggest drop in orders in a decade, down over 8% year-on-year. A reminder that Germany’s economy, once the powerhouse of the region, has been hurt by the US-China trade war and the wider eurozone slowdown.

Elsewhere, some investors are sitting tight until they know whether the US Federal Reserve will cut interest rates next Wednesday (the Financial Times is confident they will lower borrowing costs by 0.25%, judging by today’s front page).

Neil Henderson
(@hendopolis)

FT: Fed poised to lower rates for first time in a decade #tomorrowspaperstoday pic.twitter.com/ZEfYsxAej6


July 21, 2019

Such a rate could would please Donald Trump, but might not be enough to brighten the economic outlook.

Traders are also watching events in the Gulf closely, after Iran seized a UK-flagged tanker, the Stena Impero on Friday. Outgoing UK PM Theresa May is chairing a security meeting on the crisis this morning, as relations between the two countries deteriorate.

Worrying times, and an early test of Boris Johnson’s diplomatic skills….

Concerns over escalating tensions in the Gulf have pushed the oil price up this morning, gaining 1.5% or almost one dollar per barrel to $63.37.

Zee Business
(@ZeeBusiness)

#CrudeCheck | ब्रिटेन- ईरान के बीच खाड़ी में तनाव के चलते कच्चे तेल में हल्की बढ़त, #BrentCrude 63 डॉलर के पार। pic.twitter.com/6A3cKAuFFn


July 22, 2019





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