Global markets gain even though trade worries persist

Global equity markets rose on Friday on upbeat U.S. economic data while amicable messages from Chinese President Xi Jinping and U.S. President Donald Trump helped ease recent tensions over the prolonged U.S.-Sino trade war.

Equity markets warmed to China’s renewed offer to reach a trade agreement with the United States, with Xi saying China wants to work out an initial pact with the United States and has been trying to avoid a trade war.

Trump reciprocated, saying a trade deal with China is “potentially very close” and that he stands with both the people of Hong Kong and Xi amid massive protests in the former British colony.

MSCI’s gauge of stocks across the globe inched up 0.09%, with the pan-European STOXX 600 index closing up 0.44%.

On Wall Street, the Dow Jones Industrial Average rose 0.25%, the S&P 500 gained 2.79 points, or 0.09%, and the Nasdaq Composite dropped 0.01%. The Nasdaq was weighed down by a 5.94% slump in shares of Tesla Inc as its electric pickup truck design received an underwhelming response. The data was a sign of the continued resilience of the U.S. economy in the face of the trade dispute and other headwinds.

IHS Markit’s flash November composite Purchasing Managers’ Index slid to 50.3 from October’s 50.6, moving closer to the 50-mark separating growth from contraction. IHS Markit’s final Purchasing Managers’ index readings also showed German business conditions continued to wane in November, although at a reduced pace. The common currency fell 0.25% against the dollar.

Oil prices pulled back from two-month highs as doubts over the trade talks overshadowed expectations of an extension to production cuts by the Organization of the Petroleum Exporting Countries.

Brent crude futures eased 57 cents to $63.40 a barrel and West Texas Intermediate (WTI) crude futures fell 78 cents to $57.80.