Global shares rise on optimism over China-U.S. trade talks

Yuri Kageyama, The Associated Press</span>
Published Friday, January 25, 2019 12:08AM EST
Last Updated Friday, January 25, 2019 4:00AM EST

TOKYO -- Global shares advanced Friday amid persisting optimism over the potential for China-U.S. trade talks to help end a tariffs war between the two largest economies.

KEEPING SCORE: France's CAC 40 advanced 0.6 per cent to 4,899.44 in early trading, while Germany's DAX gained nearly 1.0 per cent at 11,235.44. Britain's FTSE 100 inched up 0.2 per cent to 6,830.60. U.S. shares were set for gains with Dow futures up 0.5 per cent at 24,587 and S&P 500 futures up 0.6 per cent at 2,648.80.

ASIA'S DAY: Japan's benchmark Nikkei 225 rose 1.0 per cent to finish at 20,773.56. Australia's S&P/ASX 200 added 0.7 per cent to 5,905.60, while South Korea's Kospi surged 1.5 per cent to 2,177.73. Hong Kong's Hang Seng gained 1.6 per cent to 27,548.43, while the Shanghai Composite edged up 0.4 per cent to 2,601.72. Shares also rose in Taiwan, in Southeast Asia and India, where the Sensex gained 0.2 per cent to 36,273.53.

CHINA-U.S. TRADE: Mixed messages on China-U.S. trade, with U.S. Commerce Secretary Wilbur Ross saying the two sides are still "miles and miles from getting a resolution" as they prepare for talks next week in Washington. But Ross told CNBC in an interview that he believed a deal was possible, and that a very large delegation of Chinese officials, led by Vice Premier Liu He, was headed to the U.S. capital for the talks.

ANALYST'S TAKE: Regarding trade talks, "the takeaway here remains the fact that we would likely continue to find headlines surrounding the issue prior and through the meeting to keep one guessing on the outcome," Jingyi Pan of IG said in a commentary. "The latest episode, seemingly taken with a pinch of salt as posturing, appears to have kept the damage to a minimum."

BREXIT: Lawmakers handling Britain's planned exit from the EU for the European Parliament are urging British Prime Minister Theresa May to share her plans for breaking the deadlock over its departure. In one of the starkest assessments yet of the economic impact of a "no-deal" Brexit, the chief executive of Airbus warned the aviation giant could move its U.K. operations out of Britain if the country leaves the European Union without a deal on trade relations.

INTEREST RATES: The European Central Bank did not change its interest rates or its projection for when it might start raising them. European Central Bank head Mario Draghi said risks to the European economy are increasing and the bank is ready to "adjust all of its instruments" if it runs into serious trouble. The ECB is aiming to raise rates even though the European economy has cooled as countries including Germany have lost some strength.

ENERGY: U.S. crude oil added 48 cents to $53.61 a barrel in electronic trading on the New York Mercantile Exchange. It rose 1 per cent to $53.13 per barrel in New York overnight. Brent crude, used to price international oils, rose 39 cents to $61.48 per barrel in London.

CURRENCIES: The dollar edged up to 109.87 yen from 109.53 yen. The euro fell to $1.1326 from $1.1389.

Let's block ads! (Why?)