Yahoo Finance Markets Rise On Trade Hopes, Tariffs To Be Rolled-Back, No Deal On Table Yet
The Global Markets Rise On Trade Hopes
The U.S. futures are rising on mounting hope a Phase 1 Trade Deal is close at hand. Despite concerns that no venue has been set, news from China points to a growing consensus between the two parties. China’s spokesperson for the Ministry of Commerce says the two sides will simultaneously roll-back some of the tariffs that are in place. He also says that no new tariffs will be enforced. The amount of roll-back is yet to be determined, as is the wording of the agreement. With markets rising on hope there is a growing chance the signing of a Trade Deal will be a sell-the-news event.
The Dow Jones Industrial Average and NASDAQ Composite are both up about 0.55% in early Thursday trading. The S&P 500 is close behind with a gain of 0.45%. In stock news, Disney and Activision are slated to reported earnings after the close of the session. In economic news, jobless claims fell slightly over the last week and point to ongoing tightness in the labor market. Later in the session traders will be on the lookout for consumer credit figures.
The EU Market Is Up, Growth Forecast Down
The major EU markets are up in early Thursday trading despite a downgrade to 2020 growth forecasts. The EU says the 19-member Eurozone will grow a tepid 1.1% versus the 1.2% previously expected. The DAX is in the lead with an advance near 0.75% while the FTSE and CAC trail at 0.35% and 0.20% respectively.
In stock news, shares of Seimens are up more than 4.5%. The company says revenue and earnings grew faster than expected and provided a positive outlook. Shares of Unicredit are also up, about 6.2% after the company reaffirmed its guidance. Lufthansa also reaffirmed its guidance and saw its shares rise by 8.6%. In economic news, the Bank of England is expected to release a policy statement today. The statement is not expected to bring rate change but may lay the groundwork for future cuts.
Asian Markets Flat, Mixed As Trade Concerns Battle Trade Hopes
Asian markets were less buoyant in Thursday trading as concerns over trade outweighed hopes. Traders in the region are worried about the lack of venue and other potential hurdles to a final deal. The Shanghai Composite trailed the market with no gain, 0.0% move on the day, while most others posted at least a small gain. The Nikkie and Kospi are both up about 0.05% while the ASX and Hang Seng are up 1.00% and 0.57%.
This article was originally posted on FX Empire
