😎 Summer Sale Exclusive - Up to 50% off AI-powered stock picks by InvestingProCLAIM SALE

World shares climb on trade hopes

Published 11/25/2019, 07:29 AM
© Reuters. FILE PHOTO: Signage is seen outside the entrance of the London Stock Exchange in London

By Ritvik Carvalho

LONDON (Reuters) - World shares staged a cautious rally on Monday as investors held out for some progress in U.S.-China trade talks, while the dollar dipped after its latest rally on the back of strong U.S. economic data.

The MSCI All-Country World Index, which tracks shares across 47 countries, was up 0.2% by midday in London.

European shares rose for the second straight session following reports that Washington and Beijing were nearing a trade agreement. The pan-European STOXX 600 index was up 0.7% at 1200 GMT, led by trade-sensitive mining firms. (EU)

Britain's FTSE100 index was up 0.85%, Germany's DAX rose 0.5%, and France's CAC40 index was up 0.4%.

A Chinese state-backed newspaper reported that China and the United States were "very close" to an initial trade agreement, adding to optimism from Friday, when the presidents of both countries reiterated their desire for a deal.

China said on Sunday it would seek to improve protections for intellectual property rights, including raising the upper limits for compensation for rights infringements.

"China being prepared to look at intellectual property is obviously the catalyst for a nice move higher, or a return to the highs earlier this month," said Michael Hewson, chief markets analyst at CMC Markets in London.

Earlier in Asia, MSCI's broadest index of Asia-Pacific shares outside Japan bounced 0.7%, after losing 0.4% last week.

Japan's Nikkei firmed 0.7%, while Australian stocks rose 0.5% and Shanghai blue chips rose 0.3%.

E-Mini futures for the S&P 500 added 0.2%.

On Saturday, U.S. National Security Adviser Robert O'Brien said an initial trade agreement with China was still possible by the end of the year, though he said Washington would not turn a blind eye to what happens in Hong Kong.

The comments added to worries that a Chinese crackdown on anti-government protests in Hong Kong could complicate the talks.

"A 'phase one' deal is now priced into markets; there isn't much upside that will come from that unless they announce something like a complete rollback of the tariffs imposed, (but) that doesn't really seem likely," said Simona Gambarini, markets economist at Capital Economics.


In currency markets, the dollar was steady near a 10-day high against the euro hit after its rally on Friday when U.S. manufacturing surveys beat forecasts, just as European Union numbers disappointed.

Rising Germany business morale in November did not help the euro, which traded 0.1% lower at $1.1014. Munich-based Ifo's business climate index rose to 95.0 in November from 94.7 in October. The November reading was in line with a Reuters consensus forecast.

The index that measures the dollar against a basket of currencies was flat.

European Central Bank President Christine Lagarde on Friday called on euro zone governments to strengthen domestic demand.

Federal Reserve Chair Jerome Powell speaks later on Monday and is expected to underline the steady outlook for rates given the better economic figures.

Spot gold was 0.34% lower at $1,457.13 per ounce.

Oil prices held above the $63 per barrel mark.

Brent crude futures were flat at $63.37, while U.S. crude fell 0.1% to $57.72 a barrel.

© Reuters. FILE PHOTO: Signage is seen outside the entrance of the London Stock Exchange in London

(GRAPHIC: World FX rates in 2019 - http://fingfx.thomsonreuters.com/gfx/rngs/GLOBAL-CURRENCIES-PERFORMANCE/0100301V041/index.html )

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.