Global stocks are trading mostly with increases on Monday amid hopes for reaching a Sino-American trade agreement and anticipation for the next Fed meeting.
The talks between the US and China are now close to a trade deal, with the two countries making significant progress on the deal. On Thursday, CNBC announced that Chinese negotiators have proposed to combine President Xi Jinping’s visit to the United States with the signing of the agreement.
On the other hand, investors expect the forthcoming two-day meeting of Fed bankers later this week, which is expected to keep benchmark interest rates unchanged, while providing more detail about how the Fed will Reduce its balance sheet. The results of the meeting will be announced during a press conference on Wednesday.
Asian markets recap
Asia’s main stock indexes ended with rallies the first trading session of the week in anticipation of the upcoming US Federal Reserve meeting later this week as well as the optimism surrounding the development of trade talks between Beijing and Washington.
On the Tokyo Stock Exchange, the blue-chip index Nikkei 225 rose by 133.65 points, or 0.62%, to 21,584.50 points. The Japanese exports shrank for the third month in a row in February, indicating the growing pressure on the country’s export-dependent economy. The latest data suggests that the central bank may be forced to offer more incentives to contain the effects of slowing foreign demand and trade conflict. The Japanese Ministry of Finance’s information shows that exports have fallen by 1.2% year-on-year in February. By comparison, economists expected a contraction, but to a lesser extent – 0.9%. The shares of Fast Retailing and SoftBank Group rose 0.54% and 1.15%, respectively.
In China, the Shanghai Composite added 74.67 points, or 2.47%, to 3,096.42 points. In Hong Kong, the index Hang Seng rose by 382.60 points, or 1.32%, to 29,394.86 points. The stocks of the rail freight logistic company MTR fell by 0.3% after a crash between two trains due to a signal system problem.
The South Korean index Kospi rose by 0.16% to 2,179.49 points, with Hyundai Motor shares rising by 1.48%.
In Australia, the local index S&P ASX 200 added 0.25% to its value, ending the session at 6,190.50 points.
European markets mid-session recap
German stocks are inching lower on Monday with DAX 30 wiping out 0.18% to 11,664.21 points at 10:30 GMT. The shares of Deutsche Bank and Commerzbank rose sharply by 3.9% and 6.9% amid the confirmation for merger talks between the two largest German banks. The shares of Volkswagen also edged higher, rising by 0.24%. However, the stocks of the largest components in the index – BASF, Bayer, SAP, and Allianz, moved down by 0.5-1.0%.
The French index CAC 40 is marginally unchanged at mid-session trading, rising by 3 points, or 0.06%, to 5,408.60 points. The stocks of automakers are up with Renault appreciating by 1.6% and Peugeot rising by 1.2%. Meanwhile, Airbus edged lower with its stocks decreasing by 0.4%.
London’s FTSE 100 extended its rally from last week with miners doing most of the heavy-lifting buoyed by higher copper prices as investors awaited US central bank’s policy meeting, while Footasylum surged after JD Sports’ buyout deal. The FTSE 100 is up by 0.6% to 7,277.09 points, which is its sixth straight session in the positive territory after hopes that a potentially disruptive no-deal Brexit would be averted supported it last week. Miners were on course for their best day in a month as copper prices rose again on concerns over supply tightness. Rio Tinto and BHP gained nearly 2% each and led the blue-chip gainers.
Wall Street pre-session recap
Wall Street stock index futures were mixed on Monday morning, with the Dow Jones Industrial Average under renewed pressure by a drop in shares of Dow component Boeing.
At around 06:50 a.m. ET, Dow futures indicated a drop of more than 70 points, with the bulk of that loss attributed to Boeing. Futures on the S&P and Nasdaq were both seen slightly higher, however.
Market participants are likely to monitor a fresh round of US housing data. The National Association of Home Builders will release its monthly housing market survey at 10 a.m. ET.