The recent decision by the Chinese government to cut coal consumption by reducing the number of permitted working days in coal mines from 300 to 276 has benefitted Glencore PLC (LON:GLEN). Its shares are at a 14 month high today. The Chinese government’s decision could have the effect of raising coal prices and of making Chinese coal miners less competitive.
Sterling is 0.7% higher today. The signs are that Brexit has proven to not be as bad for the UK economy in the short run as people expected. The Bank of England’s Kristin Forbes said ‘I am not yet convinced additional monetary easing will be necessary to support the economy’. A stronger pound could be good news for UK-listed shares which derive most of their revenue from abroad. This could include GlaxoSmithKline plc (LON:GSK), Vodafone Group plc (LON:VOD) and Diageo plc (LON:DGE).
The positive effects of the Federal Reserve’s decision to leave interest rates on hold is still being felt. Combined with the more positive than expected outlook for the UK economy, this has caused housebuilders to rise. For example, Persimmon plc (LON:PSN) is 2.8% higher, Barratt Developments Plc (LON:BDEV) is up 2.6% and Taylor Wimpey plc (LON:TW) is 1.7% firmer today.
A more positive outlook for the UK economy has also caused BT Group plc (LON:BT.A) to rise by 0.7% and Dixons Carphone PLC (LON:DC) to move 2.4% higher at the time of writing.