Markets are looking out for a raft of global economic data due this week, as well as digesting political events such as the weekend's Spanish election results and upcoming US impeachment hearings.
China and the US agree in principle to remove tariffs, sparking a wide rally in equities. In the UK, the Bank of England has held its key interest rate unchanged – while indicating a readiness to cut.
Markets are buoyed by broadly positive data and the Federal Reserve's rate cut. In Europe, Germany may have slipped into a technical recession. Uber and Disney to report this week, among others.
The reduced risk of a no-deal Brexit scenario has caused the pound to rise in October – but fresh election uncertainty continues to hold back UK assets and sterling
There has been some political progress on a Brexit agreement, increasing the appeal of UK assets. In the eurozone, economic activity remains weak.
Hopes of any of rapid Brexit progress are fading. More importantly, this week brings manufacturing data for September – as well as 2020 earnings outlooks from a number of bellwether global companies.
The announcement of a Brexit deal – yet to be passed by the UK Parliament – has removed some near-term uncertainty. But the longer-term picture remains unclear.