The positive session on Wall Street transferred to the other global markets with Asian stocks ending the trade on green territory and European indexes started the session with gains. Wall Street has a great rally, where the benchmark Dow Jones Industrial Average jumped by more than 600 points, which is the biggest one-day increase in eight months.
The good performance in the United States followed a statement by US central bank governor Jerome Powell, who said the benchmark interest rate was close to its neutral level – a shift from its comments less than two months ago.
Asia market recap
The Asian markets ended the trading session on Thursday mostly on green territory, awaiting the upcoming meeting of US President Donald Trump and the Chinese leader Xi Jinping during the weekend, which may ease trade tensions.
Japan’s blue-chip index Nikkei 225 jumped by 0.4% to 22,262.6 points, while the benchmark Topix added 0.35% to 1,659.47 points.
South Korean Kospi is also on green territory with a growth of 0.28%, reaching a level of 2114.10 points.
However, in China, where markets have failed to maintain their growth from earlier in the session. The Shanghai Composite index ended with a decline of 1.32% to a level of 2,567.44 points, while the smaller benchmark Shenzhen Composite wiped out 2.2% to 1,325.43 points.
In Hong Kong, the index Hang Seng dropped 0.87% to 26,451.03 points
In Australia, S&P ASX 200 added 0.58% to 5,758.4 points, with growth rates observed in most sectors.
European markets mid-session recap
German stocks rose significantly on Thursday after the comments Jerome Powell, which helped ease worries about the pace of rate hikes and hopes for some progress in US-China trade talks. The index DAX 30 rose by 0.45%, or 50.49 points, to 11,349.37 points at 10:30 GMT. Earlier the index reached a high for the session of 11,397.49 points. The banks Commerzbank and Deutsche Bank were trading mixed after the EU Commission said a reduction in Italy’s planned public deficit is not sufficient for the country to escape EU sanctions. The automakers were broadly higher, with Daimler and Volkswagen rising around 1% despite the US President Donald Trump renewing threats to impose tariffs on imported cars.
The French stocks rallied on Thursday. The investors also looked ahead to a crucial Trump-Xi meeting on the sidelines of the G-20 summit later this week amid expectations the two sides would agree on a communique for a de-escalation of trade tensions. The benchmark CAC 40 rose by 0.67%, or 33.32 points, to 5,016.56 points. The automakers Renault and Peugeot were up around 1%.
The UK shares jumped by more than 0.6% on Thursday as Wall Street’s rally spread across Europe. The index FTSE 100 rose by 0.63%, or 44.21 points, to 7,048.73 points. The British government’s assessment of different Brexit options on Wednesday, reinforced by central bank governor Mark Carney’s warning of a heavy hit to the British economy in the event of a disorderly exit from the EU, also kept investors on the sidelines. The market was also digesting a positive report following the central bank’s latest stress test of seven British banks and building societies, which showed they could withstand a disorderly Brexit without having to curb lending.
Wall Street pre-session recap
Dow Jones futures slipped 82 points, indicating a negative open of -103.43 points at 6:00 AM ET. The futures on the S&P 500 were pointing to a negative open of 12.44 points, while Nasdaq futures signaled the index will open -44.08 points.
On the economic front, the markets will wait for the jobless claims, personal income and outlays are all due out at 8:30 a.m. ET, followed by pending home sales at 10:00 a.m. ET.
In corporate news, Toronto-Dominion Bank, Dollar Tree, Abercrombie & Fitch, Dell Technologies, HP and GameStop are all scheduled to publish earnings.