Global stocks are moving on the green on Wednesday amid the positive trade news.
Investors continued to follow developments in China-US talks. The US President Donald Trump said on Tuesday he is ready to extend the Temporary Truce period if he sees progress in talks between the two countries, postponing the increase in US tariffs.
The US Treasury Secretary Steven Mnuchin and the Trade Representative Robert Lighthizer are on a visit to Beijing with Chinese Vice Premier Liu He.
Market analysts expect the two sides to reach an agreement that will not raise existing duties but will not remove them. According to analysts, the US will maintain customs duties to keep China’s business operations and technological espionage under control.
However, the investors shrugged off political uncertainty in Spain, with media reports suggesting the socialist government would call a snap general election after its expected defeat in the budget vote.
Asian markets recap
Most of the indexes in the Asian-Pacific region ended today’s trading session with increases amid hopes of a trade agreement between Washington and Beijing.
The Japanese blue-chip index Nikkei 225 added 280.27 points, or 1.34%, to 21,144.48 points. The shares of Toyota Motor Corp and Honda Motor Co rose by 2.25% and 0.90%, respectively.
On the Chinese markets, the continental index Shanghai Composite rose by 49.17 points, or 1.84%, to 2,721.07 points, while Hong Kong’s benchmark Hang Seng added 324.80 points to 28,496.13 points. the stocks of Alibaba Group appreciated by 0.75%, but those of Tencent fell by 1.02%.
On the Australian Stock Exchange, the index S&P ASX 200 reported a decline of 0.25% to 6,063.60 points. The shares of Beach Energy rose by 5.33% after the company announced a rise in sales revenue and raised its forecast for this year.
The South Korean benchmark Kospi rose by 0.5% to 2,201.48 points.
European markets mid-session recap
German stocks rose sharply at the beginning of the session on Wednesday, but later the enthusiasm of investors diminished and the indexes erased most of the earlier gains. The index DAX 30 is up by 0.21% to 11,149.99 points at 11:40 GMT. Fraport AG rose half a percent after reporting that Frankfurt Airport has served nearly 4.7 million passengers in January 2019, an increase of 2.3% YoY. Copper producer Aurubis rallied 2.5% after confirming its full-year forecast. Hospital operator Rhoen-Klinikum edged up slightly after it acquired a minority share in software provider Tiplu GmbH in Hamburg.
French stocks were edging higher on Wednesday with CAC 40 appreciating by 0.3% to 5,071.46 points at mid-session. Automaker Renault rose by 1% and Peugeot gained half a percent as tariff worries eased. The distributor of electrical supplies Rexel advanced 1.4% after narrowing its fourth-quarter net loss to 25.9 million EUR from 59.1 million EUR in the year-ago period. Asset manager Amundi soared 4.4% after confirming its profit targets for 2020.
British index FTSE 100 is up by 0.60% to 7,175.65 points at 11:40 GMT, receiving a boost from the weakened pound. TUI is the biggest loser with the shares of the holiday operator, which issued a profit warning last week, fell by 4%. Plus500 was the big the focus on the FTSE 250, as shares in the online trader plunged by 32.2% after warning 2019 profits would be hit by stricter regulation.
Wall Street pre-session recap
The futures on Wall Street indexes were higher on Wednesday morning, with market participants hopeful that Chinese and US trade authorities will reach an agreement.
At around 7:10 a.m. ET, Dow Jones Industrial Average futures rose 82 points, indicating a positive open of more than 86.24 points. Futures on the S&P and Nasdaq were also seen slightly higher.
The investors will focus on CPI numbers out at 8.30 a.m. ET time and the monthly federal budget, which will be out at 2 p.m. ET time.