Hopes of US-China trade breakthrough lift global stocks

A man looks back as he monitors the stock prices at a brokerage house in Beijing, Wednesday, Jan. 9, 2019. Shares extended gains in Asia on hopes for progress in resolving the tariffs battle between the U.S. and China as talks appeared to have been extended in Beijing. (AP Photo/Andy Wong)
A man prepares to leave a quiet brokerage house in Beijing, Wednesday, Jan. 9, 2019. Shares extended gains in Asia on hopes for progress in resolving the tariffs battle between the U.S. and China as talks appeared to have been extended in Beijing. (AP Photo/Andy Wong)
A man walks by an electronic board displaying stock prices at a brokerage house in Beijing, Wednesday, Jan. 9, 2019. Shares extended gains in Asia on hopes for progress in resolving the tariffs battle between the U.S. and China as talks appeared to have been extended in Beijing. (AP Photo/Andy Wong)
Investors chat as they monitor stock prices at a brokerage house in Beijing, Wednesday, Jan. 9, 2019. Shares extended gains in Asia on hopes for progress in resolving the tariffs battle between the U.S. and China as talks appeared to have been extended in Beijing. (AP Photo/Andy Wong)
A man checks stock prices through his smartphone at a brokerage house in Beijing, Wednesday, Jan. 9, 2019. Shares extended gains in Asia on hopes for progress in resolving the tariffs battle between the U.S. and China as talks appeared to have been extended in Beijing. (AP Photo/Andy Wong)

LONDON — Share prices around the world surged further Wednesday amid hopes the U.S. and China are on course to resolve their trade dispute following three days of discussions in Beijing.

KEEPING SCORE: In Europe, Germany's DAX added 1.1 percent to 10,919 while the CAC 40 in France climbed 1.2 percent to 4,832. Britain's FTSE 100 jumped 1.1 percent to 6,935. Wall Street looked set for more gains, with Dow futures and the broader S&P 500 futures up 0.2 percent.

CHINA-US TRADE: This week's buoyancy in stock markets has been largely due to rising hopes of a resolution between the U.S. and China over their trade dispute. After three days of discussion, President Donald Trump tweeted that the talks had been "going very well!" a potential positive sign even though no major developments had been announced. Experts say it may take months to resolve the causes of the trade war, which include disagreements over Beijing's handling of technology and intellectual property.

ANALYST TAKE: "The length and intensity of these talks seem to portray a new, more resolute approach from both sides which raises hopes that there could finally be some light at the end of the tunnel," said Joshua Mahony, senior market analyst at IG. "It is unlikely that this week will see any complete resolution to the differences between both sides, yet some form of progress on the trade side of things would no doubt provide a further boost for depressed markets."

FED MINUTES: Minutes to the last meeting of the Federal Reserve, at which interest rates were raised again, will be of interest later in the session. At the December meeting, the Fed's rate-setting panel reduced its forecasts for the number of hikes this year from three to two. Markets have gone further following recent comments from Fed Chairman Jerome Powell. Many now think the Fed will stand pat for the rest of this year amid waning economic growth and the slide in U.S. stocks.

ASIA'S DAY: Japan's Nikkei 225 index gained 1.1 percent to 20,427.06 and Hong Kong's Hang Seng jumped 2.3 percent to 26,462.32. The Shanghai Composite index surged 1.0 percent to 2,544.34 while South Korea's Kospi advanced 2.0 percent to 2,064.71.

ENERGY: Oil prices also continued to rally. U.S. crude rose $1.05 to $50.83 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, used to price international oils, added $1.06 to $59.78 per barrel in London.

CURRENCIES: The euro was up 0.1 percent at $1.1456 while the dollar rose 0.1 percent to 108.91 yen.

Must Read

Ahead of the Bell: US existing-home sales

Aug 24, 2016

US home sales expected to dip 1.3 percent in July after hitting nine-year high in June

California lawmakers approve extension of climate...

Aug 25, 2016

California lawmakers have approved a 10-year extension of the state's landmark climate change law

Applications for US unemployment benefits slipped...

Aug 25, 2016

Applications for US unemployment benefits stay below 300,000 for 77th straight week

Senators want info on driver of bus that crashed,...

Aug 31, 2016

Louisiana's U.S. senators and the Senate Judiciary Committee chairman want information about the...

Poll: More voters trust Clinton on health care

Sep 1, 2016

A new poll finds that more voters trust Democratic presidential candidate Hillary Clinton to do a...

Sign up now!

About Us

In The Headline sought to bring professionalism back into journalism, bringing you only the most exclusive and the most impactive news from all over the globe.

Contact us: sales[at]intheheadline.com