Left Menu
Development News Edition

GLOBAL MARKETS-Stocks close in on record highs on U.S.-China trade deal hopes


GLOBAL MARKETS-Stocks close in on record highs on U.S.-China trade deal hopes
Image Credit:

World stocks rallied to near record highs on Friday after China said it had agreed with the United States to cancel tariffs in phases, a key demand of Beijing for sealing a deal to end a trade war that has slowed economic growth and roiled markets. MSCI's gauge of stocks across the globe rose slightly to stand at 543.70, just a hair off the record high of 550.63 reached in January 2018.

The index compiler's gauge of Asia-Pacific shares outside Japan edged up 0.2% in early trade while Tokyo's Nikkei jumped 0.75% to a 13-month high. China and the United States have agreed to roll back tariffs on each others' goods as part of the first phase of a trade deal, officials from both sides said on Thursday, in further signs of progress even as both side continue to haggle over several contentious issues.

"As the U.S.-China dispute seems to be heading for a resolution while the developed world is adopting very easy monetary policy, risk assets are enjoying the tail wind," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management. The Chinese commerce ministry, without laying out a timetable, said the two countries had agreed to cancel the tariffs in phases.

But multiple sources familiar with the talks said the plan faces fierce internal opposition at the White House and from outside advisers. While U.S. stocks pared gains on the report of the opposition to the deal in Washington, the Dow and S&P 500 did close at all-time highs, while the Nasdaq missed a record close by less than two-tenths of a point.

The S&P 500 gained ended 0.27% higher at 3,085.18. The pan-European STOXX 600 index has also pierced through its January 2018 peak to come within a striking distance of its record high set in April 2015.

As investors wind back their buying in safe assets, the 10-year U.S. Treasuries yield rose 11.8 basis points to 1.930% , marking the biggest daily increase since Nov. 9, 2016, which followed the surprise election victory by Donald Trump. The yield has jumped to as high as 1.973%, a three-month peak, on Thursday and last stood at 1.924%.

The 10-year Japanese government bond yield rose to minus 0.050%, a 5-1/2-month high, as expectations of a Bank of Japan rate cuts dissipated in the past week or so. In the currency market, the yuan stood firm while safe-haven currencies lost their edge.

The offshore yuan traded at 6.9976 yuan per dollar, having hit a three-month high of 6.9530 per dollar in U.S. trade on Thursday. The dollar climbed to 109.31 yen, reaching a five-month high of 109.49 the previous day.

The euro slipped to $1.1050, having marked a low of $1.10355 in U.S. trade, its weakest since Oct. 16. That helped to push up the dollar index to three-week highs of 98.236. The index last stood at 98.134.

Gold also eased to $1,467.9 per ounce, having hit a five-week low of $1.460.7 on Thursday. Oil prices gained on the U.S.-China trade deal hopes. U.S. West Texas Intermediate (WTI) crude lost 0.1% to $57.09 per barrel in Asia but has gained 1.4% so far this week.

Also Read: China's leaders to hold key conclave next week

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


TRENDING

OPINION/BLOG/INTERVIEW

JNU Administration's 100-meter challenge before JNUSU

For the first time in its history, Jawaharlal Nehru University JNU Administration is seeking permanent deployment of local police to keep protesting students at 100 meters away from the Administrative Block. It would be interesting to see h...

Sentiment Analysis of Twitter users during COP25: Governments losing trust on Climate Action

Sentiment analysis of Twitter users during COP25 in Madrid, being held from December 2-13, shows widespread fear on climate change due to global warming but almost no trust on governments in meeting the emission targets. In the analysis the...

These innovators are making humanitarian response more efficient

These alarming trends prompt a call for the world to not only address the ongoing crisis but also to adopt innovative approaches to fulfill the growing humanitarian needs in such emergencies. ...

Hyderabad Encounter: A sentiment analysis of public mood on day of encounter

Sentiment analysis of twitter users revealed that they showered salutes on Hyderabad police for eliminating alleged gang rapists of the veterinary doctor but only a few believe in cops version of successive events leading to encounter....

Videos

Latest News

Duclair’s hat trick pushes Senators past Blue Jackets in OT

Anthony Duclair completed his third-career hat trick with a power-play goal 156 into overtime, as the Ottawa Senators won for the seventh time in eight home games, 4-3 over the Columbus Blue Jackets on Saturday. The ex-Blue Jacket Duclair, ...

Colts' Moore out vs. Saints; WR Hilton questionable

Indianapolis Colts cornerback Kenny Moore has been ruled out of Mondays game against the New Orleans Saints. Colts wide receiver T.Y. Hilton has been deemed to be a game-time decision, the team announced Saturday.Moore sustained an ankle in...

Dad LeBron charters jet to watch son play

The Los Angeles Lakers played Friday night in Miami and will meet the Hawks in Atlanta on Sunday, and LeBron James decided he wasnt going to waste his day off in the Southeast. Instead, James chartered a jet to travel to Ohio, where his nam...

Beauvillier's OT goal lifts Islanders over Sabres

Anthony Beauvillier scored with 156 left in overtime Saturday afternoon as the host New York Islanders edged the Buffalo Sabres 3-2 in Uniondale, N.Y. Beauvillier picked up a loose puck at the Sabres blue line, raced up the ice and shuffled...

Give Feedback