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Optimism returned on the markets worldwide

Global indexes are on the rise supported by the optimism for US-China trade talks.

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The optimism returned on global markets, as most Asian indexes ended the trading session on a green territory and European stocks are also trading with increases.

The two-day trade talks between the US and Chinese diplomats focusing on resolving the economic conflict between the two countries remain the center of the focus of the investors.

During the day, the German industrial production decreased for a third straight month in November, defying expectations for an increase, amid a sharp fall in consumer goods and energy output. However, the news from Europe was encouraging after the Italian government approved a decree aimed at shoring up troubled lender Banca Carige.

Asian markets recap

The major Asian stock indexes ended today’s trading session on a green territory, awaiting the outcome of two-day trade talks between the Chinese and US diplomats.

The Japanese blue-chip index Nikkei 225 added 165.07 points, or 0.82%, to its value, ending the day at a level of 20,204.04 points.

Nikkei 225

The shares of Japanese carmaker Nissan managed to recover from declines in the early hours of the session, adding 0.21% to its value while continuing the trial against the dismissed president Carlos Ghosn. Toyota’s stocks rose by 1.29%.

In South Korea, Kospi saw a decline of 0.58% to 2,025.27 points. Samsung Electronics declined by 1.68% on fourth-quarter earnings results, which failed to surpass analysts’ expectations. On the other hand, the main competitor, LG Electronics, also reported a 3.58% decline in the value of the stock after warning that the company’s profit may fall by 80% for the fourth quarter.

The microprocessor manufacturer SK Hynix, on the other hand, managed to complete the session with a 0.85% growth in its share value.

In Australia, the local index S&P ASX 200 rose 0.69% to 5,722.40 points, with almost all sectors reporting growth in the country. Australian and New Zealand Banking Group and Westpac appreciated by 1.1% and 1.19% respectively, while the shares of National Australia Bank and Commonwealth Bank of Australia increased to 0.91% and 0.14%.

On the Chinese markets, the Hong Kong benchmark Hang Seng managed to finish the session with a slight increase of 0.03% to 25,842.80 points.

The shares of Chinese carmaker Geely plunged by nearly 11% after the company announced its forecast for a lack of sales growth in 2019. The stocks of Alibaba Group rose by 2.4%, while those of PetroChina declined by 0.41%.

European markets mid-session recap

German shares rose on Tuesday with benchmark DAX 30 trading with a growth of 0.42% to 10,792.52 points at 11:00 GMT. Banks were moving higher with Commerzbank climbed 1.4% and Deutsche Bank Deutsche Bank jumped by 2.4%. The stocks of automakers were the biggest losers in the session with Volkswagen AG dropping by 1% and Daimler wiping out 0.1%.

DAX 30

French stocks are also on the rise, as index CAC 40 rises by 0.93% to 4,762.85 points at mid-session. Banks BNP Paribas, Credit Agricole, and Societe Generale were posting modest gains while automaker Peugeot climbed nearly 2% and Renault rose over 1%. Carrefour rallied 1.1% after Bank of America Merrill Lynch upgraded its rating on the stock to buy.

The British index FTSE 100 rises by 0.85% to 6,868.55 points at 11:00 GMT with the main driver of this optimism appears to be the ongoing trade talks between the US and China in Beijing.

Wall Street pre-session recap

The US stock index futures were higher on Tuesday morning, with market participants cautiously optimistic Washington and Beijing could be on the verge of a trade deal.

At around 6:00 a.m. ET, Dow Jones Industrial Average futures indicated a positive open of more than 150 points. Futures on the S&P 500 and Nasdaq Composite were also positive, indicating an increase of 16.16 points and 34.50 points.

During the day, the investors are likely to monitor the NFIB’s small business optimism index for December at around 06:00 a.m. ET. The markets will wait also the US trade balance for November, which will be announced at 13:30 GMT. The latest monthly Job Openings and Labor Turnover Survey (JOLTS) and consumer credit figures for November are expected to be published later in the session.