Global stocks edged higher on Wednesday, amid the investors’ hopes for the end of trade talks between the US and China and conclusion of an agreement.
The White House Economic Adviser Larry Kudlow said the two countries expect to make significant progress in talks this week. According to Myron Brilliant, Vice President of the US Chamber of Commerce, 90% of the deal is ready, having 10% more for final clarification.
However, the Brexit uncertainty continues to limit the growth of the stocks. The British Prime Minister Theresa May, after seven hours of cabinet meetings on Tuesday, said she would seek another Brexit delay beyond April 12 to try and agree the European Union divorce deal with the opposition Labour leader. Although the default remained that Britain would leave the bloc without a deal, her move offered the prospect of keeping the UK in a much closer economic relationship with the EU after Brexit.
Asian markets recap
The main stock indexes of the Asia-Pacific region ended Wednesday’s trading session with increases amid investors’ hopes for the end of trade talks between the US and China.
Chinese mainland index Shanghai Composite rose by 1.24% to 3,216.30 points, while Hong Kong’s benchmark Hang Seng rose by 346.45 points, or 1.17%, to 29,971.12 points. Tencent’s stock appreciated by 2.4%.
In Japan, the blue-chip index Nikkei 225 added 207.90 points, or 0.9%, to 21,713.21 points. The shares of Fast Retailing rose by nearly 5%. The shares of the carmaker Toyota added 0.58% of its value after it became clear that the company intends to provide free access to its patents related to hybrid vehicle technology to keep demand growth of this type of cars against the backdrop of the growing share of electric cars.
The South Korean index Kospi posted an increase of 1.20% to 2,203.27 points. The shares of the microprocessor manufacturer SK Hynix added more than 2% to its value.
In Australia, the local index S&P ASX 200 rose by 42.60 points, or 0.68%, to 6,285 points. On Wednesday, retail sales in the country reported a 15-month high for February, while the trade surplus rose above the expected level.
European markets mid-session recap
German index DAX 30 is trading with an increase of 153.59 points, or 1.31%, to 11,908.38 points at 12:45 GMT. The good news from the trade front send the stocks of the carmakers up with Volkswagen and Daimler advancing by 2% and 1%, respectively. Industrial giant Siemens is also on the rise with 1.8%, while chemical giant BASF and pharmaceutical conglomerate Bayer are up by 2.3% and 1.8%, respectively.
French index CAC 40 is up by 35.02 points, or 0.65%, to 5,458.48 points at mid-session trading. The stocks of carmakers Renault and Peugeot are trading with increases of more than 1%, while the financial sector is also strongly up. The stocks of Airbus are also on the rise, growing by 1.1% in mid-session trading.
London markets are slightly up on Wednesday as investors weighed strong economic data from Asia against weak UK figures, as well as the latest attempt to move Brexit forward. The blue-chip index is slightly up by 0.14% to 7,401.74 points at 12:45 GMT. The UK luxury fashion company Burberry Plc was stung by JPMorgan analysts cutting their full-year profit forecast, on the grounds that volatility in the pound could cost them in various Brexit scenarios. Its stocks fell by 4%. The clothing brand Superdry Plc plunged 11% Wednesday after co-founder Julian Dunkerton won a shareholder vote to allow him to rejoin the board.
Wall Street pre-session recap
Wall Street stock futures rose Wednesday on optimism over U.S.-China trade talks.
As of 8 a.m. ET, Dow Jones Industrial Average futures indicated a gain of 100 points at the open. S&P 500 and Nasdaq futures also rose.
Today, the investor will focus on weekly mortgage applications, private payrolls, the services PMI, and ISM’s non-manufacturing index.