Home News Good news in the automotive sector spread optimism among investors

Good news in the automotive sector spread optimism among investors

The good news in the automotive sector spread optimism among investors and returned global markets to grow.

Asian markets growth

Share This On Social

The good news in the automotive sector spread optimism among investors and returned global markets to grow. The markets were influenced by the restored trade talks between the US and China.

In the US, there have been reports that China plans to reduce import duties on car imports from 40% to 15%. The news has supported stocks of automotive companies in the country and Asia as a whole. The information that Huawei chief financial officer Meng Wanzhou was released on bail also helped to the positive moods of investors.

Asian markets recap

Asian exchanges ended the session on positive territory after news for restored trade talks between the US and China.

The Japanese markets led the region’s growth with the index Nikkei 225 ended the session with a 2.15% growth to 21,602.75 points, while Topix finished the day with an increase of 1.99% to 1,606.61 points.

The carmakers are among the best-performing companies in Japan, followed by the growth in US car giants after positive news from China. Yamaha Motor stock rose by 4.18%, Mitsubishi Motor stock rose by 2.90% and Toyota added 2.22% to its share value. Nissan, which is recovering from the scandal with its former president, Carlos Ghosn, has achieved a modest growth of 0.95%.

In South Korea, the indexes also finished on green territory, with Kospi adding 1.44% to its value and reaching a level of 2,082.57 points. The stock of leading South Korean car companies also jumped with Hyundai Motor adding 6.28% and Kia Motors added 3.03%.

The same positive moods were also registered with Chinese car companies, with SAIC Motor being among the leaders with a growth of 1.10%. The wider market in China was supported by developments in the automotive sector. The index Shanghai Composite added 0.31% to its value at the end of the day and finished the session at 2,602.15 points, while Shenzhen Composite advanced by 0.16% to 1,346.03 points. In Hong Kong, the index Hang Seng rose by 1.6% at the end of the trading session.

Shanghai composite index

In Australia, the S&P ASX 200 added 1.39% to its value to 5,653.5 points.

European markets mid-session recap

The French index CAC 40 is moving with increases of 1.50% at 11:00 GMT to 4,879 points and Donald Trump’s optimistic comments about the chances of reaching a trade deal with China.

The German stocks were also influenced by the good news from the automotive sector and DAX 30 is growing by 90 points, or 0.85%, to 10,870.46 points in mid-session. Fresenius is gaining more than 3.75%. RWE, E.ON, Volkswagen, BMW, Daimler, Allianz, Bayer, Lufthansa, and Vonovia are up 1.5% to 3%. Deutsche Bank, Munech.Rueckvers, Linde, SAP, Siemens, and Adidas are also trading notably higher.

DAX 30 index

The British FTSE 100 is growing by 1.28% to 6,894 points at mid-session on Wednesday. The UK’s competition watchdog has turned down a request from J Sainsbury plc and Asda for more time in a phase two investigation of a proposed merger of the two supermarket groups. The shares in Dixons Carphone Plcplunged in early trading Wednesday after it slashed its interim dividend amid a swing to a loss in the first half.

Wall Street pre-session recap

At around 6:40 a.m. ET, Dow Jones Industrial Average futures rose by 157 points, indicating a positive open of more than 192.76 points. Futures on the S&P 500 and Nasdaq Composite were also seen relatively upbeat, with an expected increase of 23.02 points and 72.76 points, respectively.

On the data front, the markets will anticipate the core CPI figures for November at around 8:30 a.m. ET, with the monthly Federal Budget, set to follow later in the day. Also, the investors will monitor Atlanta Fed Inflation Expectations Index and the weekly report on US domestic oil stocks.