The global stock indexes are trading with increases amid continuing optimism on Sino-American trade talks. Both countries started a new wave of negotiations in an attempt to reach a deal before the deadline of March 2.
According to analysts, negotiations between China and the United States may be delayed because of the many issues surrounding the intellectual property dispute. Beijing has agreed to keep the yuan stable as part of the arrangements already made with Washington.
This move excludes the possibility for China to lower the value of its currency in order to mitigate the effect of the US tariffs. The administration of Donald Trump warned that if Beijing did this and devalued the yuan, new and higher duties would follow.
Investors also awaited the Federal Reserve’s policy meeting minutes due later in the session for clues on policymakers’ thinking on interest rates and its balance sheet reduction policy.
Meanwhile, Germany’s producer price inflation eased for a second straight month to its lowest level in eight months in January.
Asian markets recap
Most Asian stock indexes ended today’s trading session on the green in anticipation of positive results from ongoing talks between Beijing and Washington, with negotiators striving to reach a trade agreement before the end of the temporary truce on March 1.
On the Chinese markets, the continental index Shanghai Composite added 0.20% to its value and ended the day at a level of 2,761.22 points. Hong Kong’s index Hang Seng rose by 257.95 points, or 0.91%, to 28,486.08 points. The stocks of China International Financial Capital Corp reported an increase of 5.79% after it became clear that technology giant Alibaba increased its stake in the company to nearly 12%.
In Japan, the blue-chip index Nikkei 225 rose by 128.84 points, or 0.60%, to 21,431.49 points. The shares of the industrial producer Fanuc rose by 0.31%, while Toyota and Honda appreciated by 0.28% and 0.69% respectively.
In South Korea, Kospi increased by 1.09% to 2,229.76 points. The shares of Posco rose by 0.59%.
Australian index S&P ASX 200 declined by 0.17% to 6,069.50 points. The BHP Billiton and Westpac Banking Corp grew by 0.83% and 0.79% respectively.
European markets mid-session recap
German stocks are on the rise with DAX 30 increasing by 0.12% to 11,322.42 points at 10:45 GMT. The index started the session with sharp increases to over 11,400 points, but later wiped out most of the early gains. Fresenius shares jumped over 5% after the healthcare firm said it expects earnings to grow faster than sales from 2020. Shares of Fresenius Medical Care AG & Co KGaA also soared more than 5% after announcing plans to repurchase shares with an aggregate volume of up to 1 billion EUR via the capital markets over the next two years. Telefonica Deutschland Holding tumbled 3.7% despite the company narrowing its preliminary loss for the fiscal year 2018.
French index CAC 40 is trading with an increase of 0.17% to 5,169.49 points at mid-session. Air France-KLM Group advanced 1.7% after its fourth-quarter net loss narrowed to 218 million EUR from 928 million EUR last year.
Britain’s FTSE 100 rose by 0.12% to 7,188.03 points at 10:45 GMT, wiping out early gains. The stocks of Lloyds Banking Group increased after promising to return cash to shareholders and optimism prevailed around the China-US trade talks, while Sainsbury’s slumped after regulators objected to its takeover of Walmart’s Asda. Intu Properties dropped 8.4% after it scrapped its dividend, under pressure from several retail bankruptcies. Glencore rose by 1.4% after announcing a 2 billion USD share buyback and an 8% rise in full-year adjusted core earnings.
Wall Street pre-session recap
Wall Street stock index futures were slightly lower early Wednesday, with market participants monitoring the latest round of trade talks between the world’s two largest economies.
At around 6 a.m. ET, Dow Jones Industrial Average futures indicated a negative open of about 25 points. Futures on the S&P 500 and Nasdaq Composite were both little changed from the previous session.
The investors are likely to closely monitor a flurry of earnings reports. CVS Health, Bausch Health, and Garmin were among the major companies expected to publish their quarterly results before the opening bell.
Agilent, Cheesecake Factory and Sturm Ruger are all set to publish their latest figures after market close.