Global stock markets rose on optimism over possible new US-China talks
Global stock markets rose Tuesday on optimism over possible new US-China talks despite heightened Middle East tensions. Meanwhile, investors are also looking ahead to meetings by the European Central Bank this week and the US Federal Reserve next week. The ECB is seen cutting rates by 10 basis points on Thursday, with the US central bank expected to lower rates by 25 basis points at the end of the month.
Asian stocks gained slightly in muted trading on Tuesday, while European stocks edged higher, following positive corporate and economics news. Wall Street futures are also into the green, gaining power from the renewed US-China trade talks.
Stocks climbed slightly on Monday as Wall Street kicked off a big week of earnings, with more than a quarter of the S&P 500 reporting this week including Facebook, Google’s parent Alphabet, Amazon, McDonald’s and Boeing.
Asian markets recap
Asian markets gained slightly in muted early trading on Tuesday. Investors were encouraged by trade developments after the South China Morning Post reported US Trade Representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin would travel to Beijing next week for renewed trade negotiations with China.
In China, the mainland index Shanghai Composite gained 0.45% to 2,899.94 points, while the smaller Shenzhen Composite added 0.58% to 9,175.83 points. Hong Kong's index Hang Seng inched higher by 0.34% to 28,466.48 points.
In Japan, the blue-chip index Nikkei 225 is up by 0.95% to 21,620.88 points. Mong individual stocks, SoftBank surged by 4.03% along with oil-and-gas engineering company Chiyoda (+5.31%) and chipmaker Tokyo Electron (+3.04%).
South Korean index Kospi added 8.11 points, or 0.39%, to 2,101.45 points. The stocks of Hyundai Motor declined by 0.75%, while LG Display gained more than 1%.
In Australia, the local index S&P/ASX 200 is up by 0.50% to 6,724.60 points.
European mid-session recap
European stocks traded higher Tuesday morning, while the pound dipped amid worries that Britain’s new prime minister could lead the country into a no-deal exit from the European Union. The pan-European index Stoxx 600 was up by around 0.6% to 390.03 points in early deals. The auto stocks jumped by 2.6% to lead gains while travel and leisure stocks slipped 0.4% as one of only two sectors in the red.
German index DAX 30 is up by 145.23 points, or 1.18%, to 12,434.63 points at 09:30 GMT. The stocks of the automotive subcontractor Continental gained 4.5% amid actualization of revenue and earnings for the year. Chipmaker stocks surged on Tuesday, led by Infineon Technologies, which added 3.7% to its market value. The stocks of financial institutions also were on the rise with Deutsche Bank adding 2% and Commerzbank gaining 2.4%.
French index CAC 40 edged higher by 0.47% to 5,592.96 points. Shares of auto parts maker Faurecia climbed 7.6% after it missed expectations but maintained first-half profitability despite a China-led decline in auto production. The stocks of aircraft manufacturer Airbus gained 0.8%. the banks BNP Paribas and Societe Generale are up by 1.6% and 2.1%, respectively.
British index FTSE 100 is up by 0.59% to 7,559.02 points. Tesco, Ocado and Sainsbury’s, however, fell between 1.2% and 2.3% after data from market researcher Kantar showed sales at all of Britain’s big four supermarket groups fell in the latest 12-week period. Premier Inn owner Whitbread, which lost more than 4% in the previous session after saying it would not return any more capital to shareholders, slid another 3.5% after brokerage Liberum cut its target price for the shares.
Wall Street pre-session recap
Wall Street stock index futures were higher Tuesday morning as investors hope for better-than-expected earnings from a host of corporate giants in the coming days.
As of 5:50 a.m. ET, Dow futures were up 65 points and pointed to an implied open of around 84 points, while futures on the S&P 500 and Nasdaq also ticked higher.
Economic data will also be in focus, with May’s Federal Housing Finance Agency House Price Index (HPI) due at 9:00 a.m. ET and June’s existing-home sales figures set for release at 10:00 a.m. ET
Posted from my blog with SteemPress : http://financeandmarkets.com/global-stock-markets-rose-on-optimism-over-possible-new-us-china-talks/