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Global stocks rallied on Monday amid hope China and the US to reach a trade agreement

Global stocks are moving up on Monday as investors remained focused on US-China trade developments and looked ahead to the ECB meeting later this week for directional cues.

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Global stocks are moving up on Monday as investors remained focused on US-China trade developments and looked ahead to the ECB meeting later this week for directional cues. The central bank is expected to revise downwards its economic forecasts and offer some measures to combat a slowdown in bank lending.

Asian markets recap

The Asian markets ended the trading session on Monday mostly on green territory after earlier it became clear that the US and China are even closer to reaching a trade agreement and end the trade war, which has been going on for nearly a year.

Some of the best-performing markets were those in China, where the continental index Shanghai Composite rose by 1.12% to 3,027.58 points, conquering the threshold of 3,000 points for the first time since June. In turn, the smaller Shenzhen Component rose by 2.4%, which Shenzhen Composite added 2.2%.

In Hong Kong, the index Hang Seng added 0.51%, reaching a level of 28,959.59 points, with the Chinese telecoms giant ZTE rising by 2%.

In Japan, the blue-chip index Nikkei 225 added more than 1%, reaching 21,822.04 points, while the shares of Fanuc rose by 3.5%. The smaller benchmark Topix added 0.73% to 1,627.59 points.

Nikkei index

The Australian index S&P ASX 200 added 0.4% to 6,217.40 points, with major raw material producers such as Rio Tinto, Fortescue Metals Group and BHP Billiton.

Only South Korea’s index Kospi failed to keep its growth from earlier in the session and ended with a fall of 0.22%, with Samsung Electronics shares falling by 0.55%.

Growth in Asia comes after reports of Wall Street Journal that the US and China are in the final stage before the conclusion of a trade agreement, with Beijing offering lower duties for a number of US imports, ranging from chemicals to cars. Washington, for its part, is considering removing most if not all trade barriers that came into force last year.

European stocks mid-session recap

German stocks rally on Monday with benchmark DAX 30 rising by 34 points, or 0.30%, to 11,636.44 points at 15:30 GMT. The stocks of chemical giant BASF advanced by 0.80%, while pharmaceutical company Bayer rose by 1.34%. The stocks of carmakers were also on the rise.

DAX index

French stocks rose notably on Monday amid hopes Washington and Beijing were close to a trade deal to end a bitter trade war between the countries. The index CAC 40 rose by 37.88 points, or 0.72%, to 5,303.07 points at mid-session. The stocks of Airbus are up by 0.3%, while those of Renault and Peugeot advanced by 0.34% and 1.3%, respectively.

British markets climbed on Monday, with investor optimism driven by reports a trade deal between China and the U.S. could be reached soon. The blue-chip index FTSE 100 rose by 0.5% to 7,141.50 points. The UK Prime Minister Theresa May has launched a new 1.6 billion GBP fund to help Britain’s poorest towns — many of which voted to leave the EU — in what is being viewed as a bid to get members of the Labour Party to support her Brexit deal.

Wall Street early market recap

Wall Street stock indexes kicked off Monday’s trading session due to rising hopes that the United States and China will end their trade dispute as early as this month.

The blue-chip index Dow Jones Industrial Average grew by 95.87 points, or 0.37%, to 26,122.19 points at 10:55 a.m. EST. The broader benchmark S&P 500 rose by 10.68 points, or 0.38%, to 2,814.37 points. The technology index Nasdaq Composite rose 41.27 points, or 0.54%, to 7,636.62 points at the opening of the session.

Investors are expecting a busy week with central bank messages and economic data, such as the number of jobs in the US in February.