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Global markets moving on green against optimism on the trade front

Global markets moving on green on the background of optimism on the trade front and strong economic data in China.

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Global markets are moving on green against the renewal of the US-China trade talks, which must end the prolonged devasting trade war between the two economic giants.

Meanwhile, France’s consumer price inflation slowed for a second straight month in December. The consumer price index rose 1.6% year-on-year following a 1.9% increase in November.

In currency markets, the dollar index, which is measuring the strength of the greenback against a basket of six competing currencies, declined by 0.14% to 96.17 points.

Asian markets recap

Most Asian markets ended Friday’s trading session with rises on the background of growing optimism over the US-China trade talks.

On the Chinese markets, the continental index Shanghai Composite recorded an increase of 2.05% to 2,514.87 points. Hong Kong’s benchmark Hang Seng added 561.67 points to its value, ending the session at 25,626.03 points.

Shanghai composite

The positive results in China came after the Department of Trade announced that talks between US and Chinese diplomats were scheduled for January 7-8.

The development of the negotiations and signs for ending the devasting trade war between Washington and Beijing has increased investor and analyst optimism.

The stocks in China were also supported by good data from the services sector. The Caixin/Markit index, which measures the value of services in the Asian country, rose in December to 53.9 points, which is its highest level in the last six months.

In South Korea, the index Kospi reported a growth of 0.83% to 2,010.25 points.

The Japanese blue-chip index Nikkei 225 rose by 452.81 points, or 2.26%, ending the day at 19,561.96 points. The shares of SoftBank fell by 2.89%, while the value of the shares of Fast Retailing, the company behind the Uniqlo chain, fell by 5.45%.

In Australia, the local benchmark S&P ASX 200 dropped by 0.25% to 5,619.40 points.

The shares of the banks Australia and New Zealand Banking Group and Westpac declined by 0.37% and 0.04%, respectively.

European markets mid-session recap

German stocks rose on Friday against the positive news on the US-China trade talks. the index DAX 30 is growing by 1.55% to 10,577.81 points at 11:00 GMT. The stocks of Daimler advanced by 1.6% after the announcement that the automaker sold considerably more than 500,000 trucks of its Mercedes-Benz, FUSO, Freightliner, Western Star, Thomas Built Buses and BharatBenz brands in 2018. The stocks of the rival Volkswagen rose by 1.2%. The company sold a total of 354,064 cars in the US in 2018, representing an increase of 4.2% YoY, boosted by popular SUVs Tiguan and Atlas. The banks Commerzbank and Deutsche Bank climbed by 1-2%.

DAX 30 index

The French index CAC 40 is appreciating by 52.17 points, or 1.12%, to 4,663.65 points at mid-session on Friday. The stocks of Nicox SA soared 13% after the company said that its partner has received approval in Canada of VYZULTA (latanoprostene bunod ophthalmic solution).

The British index FSTE 100 is also growing strongly, receiving a boost from the good economic news in China. The index FTSE 100 rose by 1.26% to 6,777.00 points at 11:00 GMT.

Wall Street pre-session recap

The futures on Wall Street indexes rose sharply ahead of Friday’s open on news surrounding US-China trade talks.

At around 6:20 a.m. ET, Dow Jones Industrial Average futures indicated a gain of 295 points at the open. Futures on the S&P 500 and Nasdaq 100 also pointed to a positive open by 35.21 points and 113.87 points, respectively.

Investors will also be keeping an eye on a speech by Federal Reserve chair Jerome Powell at 10:15 am ET. Powell will take part in “Federal Reserve Chairs: Joint Interview” panel on monetary policy and central banking at the American Economic Association and Allied Social Science Association annual meeting in Atlanta, Georgia.