Global markets registered strong growth amid expectation for the successful end of the trade talks between the US and China. The trade talks between Beijing and Washington have boosted the optimism on the market.
The investors are also focusing on the ongoing investigation into the detention of Chief Financial Officer of Huawei Meng Wanzhou.
The US authorities involved in the investigation have focused on Huawei’s suspected links with two suspicious companies. One is a telecommunications equipment vendor operating in Tehran and the other is its owner, a holding company registered in Mauritius.
The US authorities blamed Chief Financial Officer Meng Wanzhou for lying international transaction banks with Iran, saying the two companies are not related with Huawei, but in fact, the Chinese giant has controlled them. Huawei continues to state that the companies are independent.
In Europe, Germany’s merchandise trade surplus unexpectedly grew in November to its biggest level in five months despite weaker exports. The non-adjusted trade surplus grew to 20.5 billion EUR from 18.9 billion EUR in October.
Meanwhile, the UK permanent job appointment grew at the weakest pace since early 2017 amid a sharp decline in the supply of candidates.
Asian markets recap
The main stock indexes in Asia ended the trading session on a green territory amid hopes for progress in trade talks between the US and China.
The Japanese blue-chip index Nikkei 225 rose by 223.02 points, or 1.10%, to 20,427.06 points.
In South Korea, Kospi index added 1.95% to its value, ending the day at 2,064.71 points. The shares of Samsung Electronics and SK Hynix grew by 4.07% and 7.43%, respectively.
Australian benchmark S&P ASX 200 rose by 0.98% to 5,778.30 points, with major energy companies registering a rise in the value of their shares. The shares of Santos and Woodside Petroleum rose by 1.4% and 2.25%, respectively.
The good results in the energy sector came after the rise in oil prices during the day. The price of the international variety Brent rose by 1.14% to 59.39 USD per barrel, while futures on US light crude WTI added by 1.23% to its value, trading at 50.39 USD per barrel.
In China, the continental index Shanghai Composite rose by 0.71% to 2,544.34 points, while the Hong Kong’s benchmark Hang Seng added 564.95 points, or 2.18%, to its value, ending the session at 26,440.40 points.
European markets mid-session recap
German stocks rose on Wednesday to extend gains from the previous session amid further signs of progress in US-China trade talks. The benchmark DAX 30 was up by 124.26 points, or 1.15%, to 10,928.24 points at 9:30 GMT. The stocks of BASF advanced by 0.7% after reports that the chemical company is in the process of finding a buyer for its plastics business to salvage the pending deal with Solvay’s polyamide business. The stocks of Suedzucker added 0.6%.
French stocks rallied on Wednesday with benchmark CAC 40 was up 60 points, or 1.27%, to 4,833.98 points after climbing 1.2% in the previous session. Banks BNP Paribas, Credit Agricole, and Societe Generale rose between 0.4% and 0.8%. Airbus shares advanced by 2.7% after the aircraft manufacturer confirmed that it achieved 800 commercial aircraft deliveries in 2018, subject to the finalization of the auditing process.
The British index FTSE 100 rose by 1% to 6,930.22 points at 09:30 GMT. Housebuilder Taylor Wimpey soared more than 6% after the company said it remains committed to returning 600 million GBP to shareholders by way of total dividend in 2019. Its rival Persimmon climbed 4.6%. The fashion chain Ted Baker jumped by 11.3% after the company reported over 12% growth in retail sales for the five-week period from December 2, 2018, to January 5, 2019. Gold mining firm Centamin rose by 1% after announcing preliminary production results for the fourth quarter from its Sukari Gold Mine in Egypt.
Wall Street pre-session recap
Wall Street stock futures rose slightly on Wednesday. As of 4:40 a.m. ET, Dow futures climbed 117 points, indicating a higher open of 95.55 points, while S&P 500 is expected to open with a growth of 8.94 points and Nasdaq Composite to start with +28.15 points.
The markets will focus on the MBA mortgage applications, which are due at 7 a.m. ET.
Traders are likely to monitor talks from several Federal Reserve policymakers Wednesday: Atlanta Fed President Raphael Bostic speaks at an event in Chattanooga, Tennessee, at 8:20 a.m. ET; Chicago Fed President Charles Evans is speaking at an event in Riverwoods, Illinois, at 9 a.m. ET; and Boston Fed President Eric Rosengren will provide an economic outlook at an event in Boston, Massachusetts, at 11:30 a.m. ET.