China-US trade hopes lift stocks as oil prices surge

The Phnom Penh Post - - BUSINESS - Roland Jack­son and John Biers

GLOBAL stocks pushed higher on Wednesday on re­newed op­ti­mism over talks to re­solve the China-US trade war, while oil prices surged af­ter Saudi Ara­bia con­firmed it was on track to trim crude ex­ports.

Europe’s ma­jor stock mar­kets fol­lowed Asian ex­changes higher, with Frankfurt and Paris both ending day 0.8 per cent higher. London rose 0.7 per cent.

Wall Street also had a solid day, with ma­jor in­dices ris­ing for a fourth straight ses­sion.

Gains in the US mod­er­ated some­what in the fi­nal 40 min­utes of trad­ing af­ter talks to end the US govern­ment shut­down be­tween Pres­i­dent Don­ald Trump and con­gres­sional Demo­cratic lead­ers broke down. But the S&P 500 still fin­ished 0.4 per cent higher.

“Stocks were ex­tremely over­sold,” said Bill Lynch of Hins­dale As­so­ciates. “There’s op­ti­mism to­day that the mar­ket can con­tinue to be strong.”

Brent crude oil pushed above $61 per bar­rel, with Opec cut­ting out­put and con­cerns eas­ing over weak de­mand growth.

The dol­lar, mean­while, sank to its low­est level against the euro since Oc­to­ber as US Fed­eral Re­serve meet­ing min­utes, and state­ments from its of­fi­cials, made clear the US cen­tral bank was in no hurry to hike in­ter­est rates again soon.

The dol­lar also de­clined against the Bri­tish pound, de­spite lin­ger­ing un­cer­tainty over Brexit.

On Wednesday, in a set­back to Theresa May, Bri­tish law­mak­ers voted to force the prime min­is­ter to quickly set out an al­ter­na­tive plan for Brexit if she loses a cru­cial vote on her EU with­drawal deal next week.

Af­ter tak­ing a bat­ter­ing in De­cem­ber and suffering a shaky start to this year, con­fi­dence is slowly re­turn­ing to eq­uity trad­ing floors.

The gains fol­low calm­ing com­ments last week from US Fed­eral Re­serve Chair Jerome Pow­ell, fol­lowed by ap­par­ent progress in the US-China talks.

A mem­ber of the US del­e­ga­tion, Un­der Sec­re­tary for Trade and For­eign Agri­cul­tural Af­fairs Ted McKin­ney, told re­porters that the talks “went just fine”.

The Wall Street Jour­nal said the two sides were mov­ing in the right di­rec­tion, with China ready to buy more US goods and ser­vices, while fur­ther talks at cab­i­net level were be­ing lined up next week.

Oil prices – which have tum­bled in re­cent months partly be­cause of wor­ries about the im­pact on de­mand of the China-US trade war – rose sharply af­ter Saudi of­fi­cials said they were com­mit­ted to im­ple­ment­ing the lat­est OPEC agree­ment to boost prices.

Brent has climbed some 20 per cent com­pared with just two weeks ago, prior to an oil pro­duc­tion cut by Opec and non-car­tel pro­duc­ers from Jan­uary 1.

Newspapers in English

Newspapers from Cambodia

© PressReader. All rights reserved.