Global markets continue their uptrend, despite the uncertain situation after the US-China trade talks and Jerome Powell’s concern over the rising US debt.
However, the Fed will be more cautious about raising interest rates and possible will slow down tightening of the monetary policy, which supported the global markets.
Asian markets recap
The positive sentiment of investors supported the Asian exchanges, which ended the last session of the week on a green territory.
On the Chinese markets, the continental index Shanghai Composite added 0.74% to its value and ended the day at 2,553.83 points. Hong Kong’s benchmark Hang Seng reported growth of 108.59 points, or 0.41%, to 26,630.02 points. The results of the Chinese exchanges were also influenced by the three-day trade talks between US and Chinese diplomats, with details not yet available. Both sides have temporarily suspended the trade war to try to solve the problems that lie between their trade and business relations. The analysts say they have no single opinion on whether and how Beijing-Washington frictions will end.
In Japan, the blue-chip index Nikkei 225 added 195.90 points, or 0.97%, to its value, ending the session at 20,359.70 points.
The shares of Fast Retailing, the company behind Uniqlo, rose by 6.19%, despite the report of a more than 8% decrease in annual operating profit for the quarter ended November 30.
Meanwhile, former chairman of Nissan’s board of directors Carlos Ghosn was charged with two more indictments for financial abuse. Despite this news, the value of the Japanese automobile concern rose by 0.86%.
But the “Ghosn” case has cooled the interest of foreign investors to Japan. The attitude of the court towards the former Nissan chief continues to be widely discussed in the business environment. Carlos Ghosn is still in jail, staying there for a second month, while other executives have not even been questioned.
In South Korea, the local index Kospi rose by 0.60% to 2,075.57 points.
The Australian index S&P ASX 200 ended the session with a fall of 0.36% to 5,774.60 points. Most local retailers have seen a decline in the value of their shares.
European markets mid-session recap
German stocks were modestly higher on Friday as investors closely monitored the US politics and kept an eye on Brexit developments ahead of the House of Commons vote. Traders also digested minutes from the last meeting of the European Central Bank suggesting that the central bank generally remains upbeat on growth. The index DAX 30 is rising by 0.26% to 10,950.08 points at 9:30 GMT. Deutsche Bank slid half a percent on a Bloomberg report that the lender is offshoring about 60 accounting positions to Mumbai from its campus in Jacksonville, Florida. Wind turbines maker Nordex Group jumped by 5% after it signed a major contract for 150 MW project in the USA.
French stocks are also growing on Friday, expanding by 0.31% to 4,820.48 points. The stocks of Renault sank deep into the red, account a decrease of more than 2.2% in mid-session, against the developments of the scandal with its CEO Carlos Ghosn.
British stocks briefly popped its head back above 7,000, encouraged by positive vibes from the US-Sino trade talks. The FTSE 100 rose by 0.8% to 6,997.48 points at 09:30 GMT. Taylor Wimpey PLC is up by 3.6%, and Persimmon PLC increased by 3.3%.
Wall Street pre-session recap
Wall Street stock index futures cannot find single direction on Friday morning after Federal Reserve Chairman Jerome Powell reiterated the US central bank would be patient about raising interest rates over the coming months. However, he warned for the growing federal debt.
At around 04:45 a.m. ET, Dow futures rose 29 points, indicating a negative open of more than 5 points. Futures on the S&P 500 and Nasdaq are slightly on red.
On the data front, investors are likely to closely monitor the latest CPI figures as well as core CPI data for December at around 8:30 a.m. ET.