US-China trade talks progress hope supports markets

IFC Markets

Master Trader
Oct 31, 2012
London (Great Britain)
Trump tweets had “very good conversation with President Xi Jinping”

US equities advance continued on Thursday supported by President Trump’s upbeat tweet on trade talks with China. The S&P 500 rose 1.1% to 2740.37. Dow Jones industrial average gained 1.1% to 25380.74. The Nasdaq composite jumped 1.8% to 7434.06. The dollar strengthening reversed on mixed data: both the ISM and Markit’s manufacturing indexes declined more than expected while nonfarm productivity and unit labor costs rose above expectations: the live dollar indexdata show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, fell 0.8% to 96.294 and is lower currently. Futures on stock indices indicate higher openings today.

Trade hopes lift European stocks

European stocks rebound continued on Thursday. The EUR/USD joined GBP/USD’s sharp rise after report of progress at Brexit negotiations, and both are higher currently. The Stoxx Europe 600 index rose 0.4%. Germany’s DAX 30 gained 0.2% to 11468.54. France’s CAC 40 however lost 0.2% and UK’s FTSE 100 slipped 0.2% to 7114.66.

Hang Seng still ahead other Asian indices

Asian stock indices are extending gains today on trade tensions easing. Nikkei jumped 2.6% to 22243.66 as yen resumed slide against the dollar. Chinese stocks are sharply higher: the Shanghai Composite Index is up 2.7% and Hong Kong’s Hang Seng Index is 4.4% higher. Australia’s All Ordinaries Index ticked up 0.1% despite Australian dollar continued rise against the greenback.

Brent edges higher

Brent futures prices are inching higher today. Prices ended lower yesterday after reports global production rose considerably last month: Brent for January settlement closed 2.9% lower at $72.89 a barrel on Thursday.