Global markets recorded increases on Thursday after the improvement of trade tension between the US and China. Trading was volatile at the beginning of the week but was able to stabilize in the wake of late-day reports that tensions between the US and China have been relieved.
Earlier today, it was released that the authorities in Beijing are working to increase access to local markets for foreign companies, a move that aims to further ease American-Chinese tensions. The plan aims to replace the initiative China-Made 2025, the purpose of which is to make the country a leader in markets such as environmentally friendly cars and robotics and has a direct link to Washington’s duties.
Asian markets recap
The Asian markets ended the stock market session on Thursday on a green territory, with Chinese markets being the best performers against hopes for improvement in trade talks with the US.
The stock exchanges in China initially started the session without a single direction, but eventually managed to end with growth. The continental index Shanghai Composite ended the session with a 1.23% growth to 2,634.05 points, while the smaller Shenzhen Composite index posted an increase of 1.1%. In Hong Kong, the benchmark Hang Seng added 1.29% to 26,524.35 points.
Japan’s blue-chip index Nikkei 225 rose to 21,816.19 points, while the Topix Index added more than 0.6%.
In Australian markets, the growth was moderate. The benchmark S&P ASX 200 rose by 0.14% to 5,661.60 points. During trading, Hutchison Telecommunications’s shares collapsed by more than 21% and those of TPG Telecom – by 16.67%. The two companies announced plans for a merger in August this year, but the Australian Competition and Consumer Commission published a statement expressing concerns about the proposal.
European markets mid-session recap
The European indexes are moving without major changes and without finding a single direction in mid-session trade.
After a positive start, the German stock market has slipped into the red, with investors, treading cautiously ahead of a slew of economic data from the zone, taking some profits after two successive days of gains. The benchmark DAX 30 is growing by 9.80 points at 11:00 GMT to 10,939.23 points with just an hour ago being at session low 10,890.72 points. The index has gained 1.38% on Wednesday, after having moved up by 1.5% a day earlier. Fresenius is declining by about 2.4%. Vonovia, Deutsche Telekom, Covestro and Deutsche Boerse are lower by 1 to 2%. BMW is gaining more than 2%. Wirecard, Deutsche Post, BASF, Daimler, RWE, Volkswagen, Adidas, and Siemens are gaining 0.8-1.2%.
The French indexes also deteriorated soon after starting of the market and moving near the closing level from yesterday. The CAC 40 is trading at 4,908.52 points at 11:00 GMT.
The FTSE 100 opened slightly higher on Thursday, but then lost ground and fell by 0.2% to 6,864.78 points. Underlying earnings growth of 10.9%, ahead of consensus forecasts, helped travel agent TUI advance 5.1% to £11.97. The strong performance is underpinned by a strong contribution from its higher-margin hotel and cruise businesses. Rival Thomas Cook, which is under scrutiny over its financial position, gained 10.7% to 32.6 pence. A lower effective tax rate saw support services firm Serco guide for earnings per share for 2018 and 2019 to come in ahead of consensus expectations by between 5% and 10%.
Wall Street pre-market recap
Wall Street pre-market Thursday is tilting higher, with US stock-index futures pointing to an opening bell up around 0.20% from Wednesday’s close. The blue-chip Dow Jones Industrial Average is expected to open with a growth of 10.73 points, according to indicative futures at 6:40 am ET. The broader index S&P 500 indicates growth of 2.18 points and Nasdaq Composite with a growth of 18.54 points.
On the data front, investors are likely to closely monitor the latest jobless claims figures at around 8:30 a.m. ET, with import prices for November scheduled to be released at the same time.
In corporate news, Adobe and Costco are both expected to publish their latest quarterly earnings after Thursday’s closing bell.