Global markets mostly higher amid trade optimism
GLOBAL STOCK markets moved mostly higher on Friday amid optimism that U.S.-Chinese trade relations are improving and on early reports that online Christmas shopping was up over last year in the U.S.
European markets rose in midday trading and Wall Street was primed for more gains after reaching new highs yet again on Thursday. Hong Kong finished with gains and Tokyo declined.
Investors welcomed U.S. President Donald Trump’s comment that an interim “Phase 1” trade deal with China was “getting done.” Trump said he and Chinese President Xi Jinping would hold a signing ceremony.
Traders still are waiting to see details of the agreement aimed at helping to settle a 17-month-old trade war between the two countries.
Chinese customs data this week showed November soybean imports rose in a possible boost to American farmers. Midwestern farm states were battered by Beijing’s earlier suspension of purchases of U.S. soybeans, the biggest Chinese import from the United States, in response to Trump’s tariff hikes on goods from China.
“Broadly risk sentiment is positive,” Mizuho Bank said in a report.
In midday trading, Frankfurt’s DAX rose 0.5 per cent to 13,375 and France’s CAC 40 also gained 0.5 per cent to 6,058. London’s FTSE turned around after early losses and was up 0.3 per cent to 7,656.
On Wall Street, futures for the benchmark Standard & Poor’s 500 index and the Dow Jones Industrial Average were up 0.3 per cent.
On Thursday, both reached new highs. The S&P 500 rose 0.5 per cent and the Dow gained 0.4 per cent. The Nasdaq composite climbed 0.8 per cent.
Investors welcomed a report by Mastercard SpendingPulse that showed U.S. online Christmas shopping rose 18.8 per cent over a year earlier.
In Asia, the Shanghai Composite Index was off 2 points at 3,005.04 and Tokyo’s Nikkei 225 fell 0.4 per cent to 23,837.72. Hong Kong’s Hang Seng index gained 1.2 per cent to 28,202.10 and Seoul’s Kospi added 0.3 per cent to 2,204.21.
Sydney’s S&P-ASX 200 gained 0.4 per cent to 6,821.70 and India’s Sensex advanced 0.8 per cent to 41,507.97.
Benchmarks in Taiwan and Singapore advanced while New Zealand declined.
Also Friday, Japan’s government reported factory output fell 0.9 per cent in November compared with the previous month. Japanese retail sales rose 4.5 per cent over a month earlier but inventory levels were high.
Despite optimism about U.S.Chinese trade, traders still are concerned about bigger unresolved disputes.
The coming year also has the added complication of the U.S. presidential election.
ENERGY: Benchmark U.S. crude gained 15 cents to $61.83 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, used to price international oils, advanced 9 cents to $66.85 per barrel in London.
CURRENCY: The dollar weakened to 109.50 yen from Thursday’s 109.57 yen. The euro rose to $1.1152 from $1.1100.