Global stocks are on the rise amid trade optimism and positive corporate earnings reports.
The investors continue to monitor the trade talks between Washington and Beijing, which resumed on Monday. Analysts’ expectations are to reach a trade deal before the end of February. The most likely scenario is an agreement without imposing more duties in the future, according to the analysts from Bank of America Merrill Lynch. It is possible that the existing duties will be preserved without further increase in their values.
The latest studies show that China’s imports and exports in January are likely to see further declines. Imports in the country are expected to fall by 10% in January from a year earlier, which will also be the biggest decline since July 2016. Exports, on the other hand, will shrink by 3.2% compared to January 2018.
Asian markets recap
Most of the Asia-Pacific indexes ended the trading session on Tuesday with rises, while investors expect trade talks between the US and China to end with an agreement before the end of the temporary ceasefire period on March 1st.
The Japanese blue-chip index Nikkei 225 added 531 points to its value, ending the day at 20,864.21 points. The shares of Fast Retailing and Renesas Electronics rose by 3.01% and 16.26% respectively.
On the Chinese markets, the continental index Shanghai Composite rose by 0.68% to 2,671.89 points, while Hong Kong’s index Hang Seng posted a slight decline of 0.02% to 28,139.28 points.
The South Korean index Kospi rose by 0.45% to 2,190.47 points. The shares of Samsung Electronics and SK Hynix rose by 2.33% and 2.43% respectively, while LG Electronics added 3.75%.
In Australia, the local benchmark S&P ASX 200 was able to recover from the session, adding 0.30% to its value and ended the day at a level of 6,079.10 points. The stocks of energy companies Santos and Woodside Petroleum rose 1.89% and 0.58%, respectively, while the shares of Beach Energy added 2.11% of their value.
European markets mid-session recap
German stocks rose sharply on Tuesday after US congressional negotiators reached an agreement to avoid another government shutdown. DAX 30 is trading with an increase of 140 points, or 1.27%, to 11,154.96 points. Banks Commerzbank and Deutsche Bank rose over 1% while automaker Daimler jumped 2 percent and Volkswagen advanced 2%. Industrial and technology group ThyssenKrupp fell nearly 2% after warning of growing uncertainties despite reporting a rise in Q1 net profit and confirming full-year forecast.
French stocks rose on Tuesday with CAC 40 rising by 1.15% to 5,071.95 points. Banks BNP Paribas, Credit Agricole, and Societe Generale were up between half a percent and 1%. Tire maker Michelin Cie Des Estb soared 10% after its sales for the fiscal year 2018 rose 4.1% at constant exchange rates. Luxury goods company Kering rose 0.8% as its FY18 profit more than doubled.
British index FTSE 100 is up by 0.30% to 7,150.73 points. AA Plc shares rose over 1% after the company said it expects trading EBITDA for the fiscal year to be not less than 340 million GBP. The stocks of Indivior fell by 3% after a US Court has denied the company’s motion to stay issuance of the mandate following the prior ruling vacating the preliminary injunction granted against Dr. Reddy’s Laboratories on SUBOXONE Film. Transport company Stagecoach Group gained 1% after confirming that its subsidiary, East Midlands Trains Limited, has agreed on a new short-term rail franchise with the Department for Transport.
Wall Street pre-session recap
Wall Street stock index futures rose Tuesday amid news that U.S. lawmakers had secured a tentative deal on border security funding on Monday.
At around 7:30 a.m. ET, Dow Jones Industrial Average futures rose 211 points, indicating a gain of more than 198.89 points. Futures on the S&P 500 and Nasdaq 100 were also higher, indicating positive opening by 19.95 points and 59.56 points.
Job Openings and Labor Turnover Survey (JOLTS) figures for December will be published later in the session.