Global markets are on the rise at the beginning of the week, against the growth of heavyweight miners and banks.
In the focus of investors this week, the main topic will be the upcoming talks between Beijing and Washington to resolve the trade dispute, whose temporary truce expires in early March.
The optimism of markets and analysts was obscured when the Wall Street Journal reported two weeks ago that the two countries have not yet reached a draft agreement on trade issues and US President Donald Trump said there was no provision for a meeting between him and the Chinese leader Xi Jinping before the end of the temporary truce.
Trump’s administration has warned that if there is no agreement by March 1, it will raise tariffs on Chinese imports worth 200 billion USD from 10% to 25%.
Asian markets recap
The main stock indexes of the Asia-Pacific region ended the first session of the week without a single direction in anticipation of a new round of trade talks between China and the United States.
In China, the index Shanghai Composite added 35.66 points, or 1.36%, reaching a level of 2,653.90 points. The Hong Kong’s index Hang Seng rose by 197.52 points, or 0.71%, to 28,143.84 points. The shares of technology giant Tencent rose by 1.97%, while those of Alibaba Group and China Telecom Corp reported increases of 0.24% and 2.67%, respectively.
In South Korea, the Kospi posted an increase of 0.17% to 2,180.73 points. Samsung Electronics rose by 0.45%, while SK Hynix added 0.82%.
Tokyo Stock Exchange is closed today for a national holiday.
In Australia S&P ASX 200 wiped out 0.18%, closing the session to 6,060.80 points. The shares of Australia and New Zealand Banking Group and Commonwealth Bank of Australia declined by 1.3% and 1.24% respectively, while those of Westpac and National Australia Bank declined by 1.53% and 1.62% respectively.
European markets mid-session recap
British blue-chip shares bounced back on Monday buoyed by strength in global miners and oil shares, while the US dollar climbing to a near six-week high lifted companies with greater international exposure. The index FTSE 100 is up by 37.21 points, or 0.53%, to 7,180.39 points. Miners climbed to their highest since November with Chinese iron ore futures at record highs on concerns that supply from Brazil, the country’s second-largest ore supplier, may decline after a fatal dam accident at a Vale mine. Oil majors BP and Shell were also among top boosts on the back of higher crude prices.
German stocks rose today with DAX 30 appreciating by 0.80% to 10,993.60 points. The shares of BASF rose by 1.25%, while those of pharmaceutical giant Bayer appreciated by 0.74%. The stocks of automakers are down with BMW wiping out 1%.
French stocks were moving higher Monday morning, with investors indulging in some selective buying amid optimism about a new round of trade negotiations between the US and China that begin later this week in Beijing. The index CAC 40 is up by 0.89% to 5,005.74 points. Capgemini is rising by nearly 3%. Peugeot, STMicroelectronics, Airbus Group and Atos are up 2 to 2.2%. Unibail Rodamco, ArcelorMittal, Louis Vuitton, Vinci, Veolia Environment, Technip, Accor, AXA, Kering and BNP Paribas are rising 1.3 to 2%. Societe Generale, which saw some weak spells in recent sessions, remains subdued, trading nearly 0.6% down.
Wall Street pre-session recap
Wall Street stock index futures were higher early Monday, as investors monitored trade talks and political developments.
At around 6:30 a.m. ET, Dow futures indicated a positive open of more than 65 points. Futures on the S&P and Nasdaq were also seen higher, by over 6 points and 22 points, respectively.