* European stock markets mixed at the open
* Sterling stabilises after biggest decline in a year
* Trump faces impeachment vote
* China trims 14-day repo rate 5 bps to 2.65%
* German business sentiment rises in December
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
(Updates price actions, adds comment)
By Dhara Ranasinghe
LONDON, Dec 18 (Reuters) - World stocks remained just off
record highs on Wednesday after climbing for five straight
sessions, while Britain's pound nursed heavy losses as Brexit
uncertainty returned.
European equities edged higher .STOXX after falling the
day before as Britain's Prime Minister Boris Johnson took a
harder line on Brexit.
Earlier, Asian shares drifted down. Japan's Nikkei .N225
dipped 0.6% and China's stocks slipped .CSI300 even after
Beijing trimmed another short-term interest rate. U.S. equity futures ESc1 1YMc1 were up and MSCI's world
stock index .MIWD00000PUS stood just off record highs. It has
rallied almost 23% this year, set for its best year in a decade
and the fourth-best year ever.
A run of better data recently has helped calm fears of a
recession while phase one of a Sino-U.S. deal on trade appears
to have eased some of the uncertainty on the global outlook.
German business morale rose more than expected in December
to a six-month high, the Ifo survey showed on Wednesday,
suggesting that Europe's largest economy picked up steam in the
fourth quarter. "I expect markets to end the year quietly but mildly
positively, especially if the PBoC does nibble down the lending
interest rate later this week," said Chris Bailey European
strategist at Raymond James, referring to China's central bank.
"Bigger challenges naturally await for next year ... but I
think traders and investors will be happier to grapple with
these actually in 2020."
NOT SO FAST
But it might be too soon to declare an all-clear on the
political front. The Democratic-led House of Representatives in
the United States is expected to vote on Wednesday for two
articles of impeachment that charge President Donald Trump with
abuse of power and obstruction of Congress. Few expect the Republican-dominated Senate to convict Trump
and force him from office, but the impeachment process could
focus attention on next year's U.S. election risks.
In Britain, the Prime Minister Johnson says he will use the
prospect of a Brexit cliff-edge at the end of 2020 to demand the
EU give him a comprehensive free trade deal in less than 11
months. Sterling slid 1.5% on Tuesday in its largest one-day fall
this year as fears of a hard Brexit resurfaced
The pound was last down 0.3% at $1.3094 GBP=D3 , giving p
all the gains made since the Conservative Party's election
victory last Thursday. GBP/
"This is a correction of the election euphoria, slowly but
surely, as the realisation sets in that this whole Brexit drama
is not over yet and just another deadline of a hard Brexit will
be looming eventually at the end of the year," said Thu Lan
Nugyen, FX strategist at Commerzbank.
Analysts said Thursday's central bank meetings in Britain,
Japan, Sweden and Norway could bring some volatility.
Sweden's central bank is expected to become the first in the
world to claw its way out of negative interest rates on
Thursday, with analysts expecting a rise in the benchmark repo
rate to zero from -0.25%. The euro was down a fifth of percent at $1.1127 EUR= and
Japan's yen was little changed at 109.49 per dollar JPY= .
The Turkish lira reached its weakest level against the
dollar TRY= in more than two months after the U.S. Senate
passed legislation with provisions to punish Ankara, raising
concern about already strained ties with Washington.
It has lost more than 11% this year after a currency crisis
chopped its value by 30% in 2018.
Elsewhere, oil prices fell from three-month highs as data
showed U.S. crude stocks rose unexpectedly in the most recent
week. U.S. crude CLc1 fell 0.7% to $60.51 a barrel. Brent
crude LCOc1 futures lost 0.4% to $65.83. O/R
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