Market Review – Fundamental Perspective 30 November 2017

US equity markets are on course to build on Tuesday's gains as we near the open on Wall Street, with the latest North Korea missile launch doing little to deter investors.
Not so long ago, the threat of escalation caused by such action would send investors fleeing for safe havens but as time has gone on and nothing has escalated beyond tough talk, investors have become less sensitive to the tests. Even Gold, the traditional safe haven, has seen only minor flows on the back of the launch and continues to trade below $1,300 which has been a notable resistance level for the yellow metal.
Sterling is trading at a two month high against the dollar this morning, after reports that the UK has agreed a divorce settlement with the EU following months of negotiations. While nothing has been explicitly confirmed and is unlikely to be given the tight political spot Theresa May finds herself in, if this is correct then this would be a major step towards moving negotiations on to transition deals and a future trade agreement.
Progress has come at a snail's pace so far and this agreement, if true, comes as May is put under substantial pressure by businesses demanding assurances on the future relationship with the EU and how it will impact them. While an agreement will come as a relief, as reflected in the rise in the pound, there's still a long way to go and there's likely to be many many more difficulties faced along the way. This is the first of many large hurdles on the way to Brexit, but it's a very important first step.

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