The US-China trade talks gave impetus to the global markets at the beginning of the week.
The US and China hold two-day talks in Beijing aimed at resolving the trade dispute between the two countries. China is looking for a way to resolve its trade problems with the United States through equitable concessions, and many investors cannot predict what the development of these talks will be.
The two countries have exchanged a series of tariffs for goods worth billions of dollars, raising fears about the slowdown in the global economy.
Today’s negotiations are expected to be followed by comments from the central banks of both countries.
Asian markets recap
The main Asian indexes ended the trading session on green territory amid the new round of trade talks between Beijing and Washington.
The Japanese blue-chip index Nikkei 225 added 477 points, or 2.44%, to its value, ending the day at 20,038.97 points. The shares of Toyota rose by 3.15%.
In South Korea, Kospi reported a growth of 1.34% to 2,037.10 points, with the best performer being the metallurgical corporation Dongbu Steel rising by almost 30% after the company announced its plans to issue new shares to attract more investments. The shares of Samsung rose by 3.47%.
Australian benchmark S&P ASX 200 rose by 1.14% to 5,683.20 points, supported by the good performance of mining companies. The shares of Rio Tinto and Foretescue Metals Group rose by 2.69% and 3.26%, while BHP Billiton increased by 3.03%.
On the Chinese markets, the Hong Kong index Hang Seng added 199.19 points, or 0.78%, to its value, ending the session at 25,825.22 points. The stocks of China Mobile rose by 1.11% after Nomura changed its rating for the company from “Neutral” to “Buy”, citing the new 5G standards that are getting more and more popular.
The continental index Shanghai Composite, which closely watches the trade talks between Beijing and Washington, posted a growth of 0.72% to 2,533.09 points.
European markets mid-session recap
The European markets opened with strong growth amid ongoing trade talks between the US and China. In the opening deals all the major indexes rose sharply, but later the moods worsened and wiped out the initial growth.
The German stocks register slight decrease at 09:00 GMT, decreasing by only 3 points to 10,764.38 points. The shares of the carmakers are moving up, as Volkswagen rising by 0.74% and Daimler appreciating by 0.36%. The chemical producer BASF is also on the uptrend with a growth of 0.21% at mid-session, while the industrial conglomerate Siemens is down by 0.39%.
The French stocks also kicked-off the trading with growth, but shortly after 09:00 GMT the main index CAC 40 is down by 0.13% to 4,730.97 points. On the macroeconomic front, the markets will watch the November retail sales figures in the Eurozone and, this afternoon, the December ISM services index. The statistics of orders to the industry is postponed because of the “shutdown”.
London’s blue-chip index was having trouble getting itself in gear. The Footsie was slightly below opening level losing minimum 0.2% to 6,823.08 points at 09:00 GMT. While no blue-chip companies are scheduled to update investors on their performance today, investors will have a lot to look out for on the corporate front during the rest of the week, including updates from FTSE 100 supermarkets Morrisons, Tesco and Sainsbury’s as well as from high street retailer Mark & Spencer.
Wall Street pre-market recap
Wall Street index futures were slightly higher on Monday morning after stronger-than-expected jobs data and a dovish turn from the Federal Reserve helped to alleviate concerns of a possible economic slowdown.
At around 4:20 a.m. ET, Dow Jones Industrial Average futures rose 28 points, indicating a positive open of more than 16.84 points. Futures on the S&P and Nasdaq are also on positive territory.
On the data front, ISM non-manufacturing figures for December are expected to be released at around 10:00 a.m. ET.
On Friday, the Dow jumped more than 700 points amid better-than-expected economic news and easing fears of tighter monetary policy in the near term.