Equities rallied on optimism that the US-China trade dispute might be resolved. A scheduled two days of negotiation was extended by a third day, suggesting things are going well. The arrival of US officials from energy, agriculture and treasury departments is a good sign that discussions are becoming more explicit on topics such as intellectual property and trade deficit.
Optimism about a deal on trade has helped extend the stock market’s rally, with major share indexes in both Europe and Asia climbing, and futures pointing to another positive day in the US, following on from 1% gains for all three major indexes. Though not quite as giddy not yet, at least – building optimism for a trade deal between the US and China ensured another positive start on Wednesday morning,
In the first hour of trading in Europe, all major stock indexes were higher, with gains of as much as 1.1% for Germany’s benchmark DAX Index. Elsewhere on the continent, stocks rose between 0.7% and 0.9%, with the Euro Stoxx 50 higher by 0.9%. European gains followed similar increases in Asia, where all Chinese indexes saw gains. The Shanghai Composite, China’s benchmark index, was up 0.7%, while the Shenzhen Composite was up 0.8%. Japanese stocks also saw a strong day with the Nikkei 225 up 1.1% at the close. In the US, futures markets pointed to another positive day, with the Dow Jones, S&P 500, and Nasdaq all looking to open around 0.3% higher. Oil is rising for an eigth session. Brent crude is up 2% to $58.91 per barrel.