LONDON/SYDNEY (Reuters) – Shares already trading at record highs piled on the gains and the pound soared on Friday as a last-gasp Sino-U.S. trade deal and a thumping election win by Britain’s Conservative Party cleared two of the darkest clouds on the global investment horizon.
The double dose of relief knocked safe-haven sovereign bonds and the Japanese yen, and led markets to scale back the chance of more interest rates cuts around the world.
“Global investors have been given two of the biggest gifts on their Christmas list and should be appreciative for a while at least,” said Sean Callow, a senior forex analyst at Westpac.
“Global equity indices such as MSCI World should set more record highs and sterling could push above $1.36.”
The pound hit its highest since mid-2018 as exit polls and then a run of UK vote results quickly wiped out any chance of a shock win by the left-wing Labour opposition, which had been a worry for investors.
Prime Minster Johnson won a…
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