Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

'Moving right along'? Shares nudge up after Trump trade talk

Stock MarketsDec 06, 2019 07:22AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York

By Tom Wilson

LONDON (Reuters) - World shares ticked up on Friday, buoyed by comments from U.S. President Donald Trump that talks aimed at dialing down the damaging trade war with China were "moving right along".

Trump's relatively upbeat tone in comments on Thursday was enough to encourage riskier bets by investors, despite a lack of agreement over whether existing tariffs should be dropped as part of an initial deal to ease the long standoff.

European shares, including the broader Euro STOXX 600, gained 0.4% by late morning, with indexes in Frankfurt and Paris up by similar amounts. Banks, technology firms and retail companies led the gains.

Wall Street futures were set to open in positive territory, too, with gains projected between 0.3%-0.4%.

The cautiously buoyant mood mirrored an appetite for riskier bets in Asia, where MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.6%.

The MSCI world equity index, which tracks shares in 47 countries, added 0.2% to 555.07 points, not far off a record high of 550.63 hit last January but still on track for a weekly fall.

Investors were hoping the two sides can reach a compromise to at least avoid their worst fear: that the United States goes ahead with its final batch of tariffs on about $156 billion of Chinese exports, due to take effect on Dec. 15.

Trump's remarks came after Chinese officials reiterated demands that some U.S. tariffs be rolled back if the sides are to reach a so-called phase one deal.

Markets had expected the sides to seal the initial deal in November. Instead, investors are nervously watching the approaching deadline for the new U.S. levies.

"The difficulty with this is it's very difficult to time and to trade," said Jeremy Gatto, a multi-asset investment manager at Unigestion. "We are relatively favorable towards riskier assets in general - but with hedges."

Gatto said those hedges include currencies such as the U.S. dollar, Japanese yen and Australian dollar, as well as options.

Investors have already taken precautions against a possible slide in stocks by buying put options, with demand for put options to hedge exposure to the S&P500 index climbing in recent days.

In one sign of detente, China said it would waive import tariffs imposed last year on some U.S. soybean and pork shipments. Beijing is rushing to source more meat to fill a gap in protein supplies.

China stocks posted their biggest weekly advance in nearly two months, with the blue-chips up 0.6%.

Investors were looking out for U.S. jobs data, due out at 1330 GMT. The non-farm payrolls report is expected to show 180,000 new jobs were created in November, up from 128,000 a month earlier.

Signs of buoyancy in the labor market would soothe anxiety over the impact of the trade war.

"Markets are in consolidation phase," said Salman Ahmed, chief investment strategist at Lombard Odier. "It's wait and watch for first, how does the non-farm payrolls look and, more importantly, the Dec. 15 tariff deadline."

In other economic data, German industrial output fell unexpectedly in October, pointing to persistent weakness in the backbone of the economy. Berlin said, however, that new orders and business expectations suggest output may stabilize.

While markets have largely priced in the view that the world economy has dodged the bullet of recession, there are still signs of fragility in many major economies.

OIL SKIDS

Oil prices steadied and were set for weekly gains ahead of a meeting of OPEC and its allies later in the day, where the grouping is expected to formally agree to more output cuts in early 2020.

Sources told Reuters that OPEC+ agreed to a 500,000 barrel per day cut, with the group due to next meet in March.

Brent crude futures were down 0.3%, or 18 cents, at $63.21 a barrel, a retreat from earlier gains.

The agreement coincided with the initial public offering of state oil firm Saudi Aramco, which was priced at the top of its range and raised $25.6 billion in the world's biggest IPO.

In currencies, the British pound lost 0.3% but was still set for its best week since October. It has gained 1.5% against the dollar this week.

Sterling had spiked to a seven-month high of $1.3166 on Thursday on bets that next week's election will give the Conservative party the majority it needs to deliver Brexit, ending near-term uncertainty.

The pound last stood at $1.328. It hit 2-1/2-year highs versus the euro.

Against a basket of currencies the dollar has dropped every day this week, falling to a one-month low of 97.356 on Thursday. The index was up a smidgeon at 97.460, and has lost nearly 1% this week.

For Reuters Live Markets blog on European and UK stock markets, please click on: [LIVE/]

'Moving right along'? Shares nudge up after Trump trade talk
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (10)
Ron Warren
Ron Warren Dec 06, 2019 5:57AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Anyone remember back in July when the FED announced. The market dropped a couple hundred points and started coming back. Trump dropped the tariff bomb and dumped the market. Don't think that can't happen again. Trump is a "Wild Card."
Bob Blahblah
Bob Blahblah Dec 06, 2019 5:57AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
constant shill drivel from the pump shack hemreuters comrades
TA XVCI
TA XVCI Dec 06, 2019 5:55AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Trump will be wait til the perfect time to make the deal. Near the election! To improve his chances!
Xin Zhang
Xin Zhang Dec 06, 2019 5:41AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
next headline, Trump says the trade talk moved right along...to a sideway.
Nathan Kriever
Nathan Kriever Dec 06, 2019 5:09AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
not exactly sure why anybody would buy it. Less Than 1% share?? {Good luck trying to get 1c if there was ever a Liquidation} Do people really think they're getting an Ownership?
Trade The Trend
TradingTheTrend Dec 06, 2019 4:02AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
the arrival below this has a title of trade tention causing decline. who is writing your articles? they contradict eachother
Trade The Trend
TradingTheTrend Dec 06, 2019 4:02AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
this must be "journalism"
rob finch
rob finch Dec 06, 2019 4:02AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It's called hedging.
David David
David9 Dec 06, 2019 3:44AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Trust me, if Trump pokes at the Lion again, she will Roar and markets will sink worldwide.
Brian Brick
Brian Brick Dec 06, 2019 3:44AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
David wrong again
Herra Peruna
Herra Peruna Dec 06, 2019 3:44AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
She or he?
Ryan Henderson
Ryan Henderson Dec 06, 2019 3:44AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Shere Wong
Ryan Henderson
Ryan Henderson Dec 06, 2019 3:44AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Here in America we like to poke small people with little D’s.
MWAN WAN
MWAN WAN Dec 06, 2019 12:20AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Trump might delay the tariff till 2020 at last moment, only he will do that kind of thing
greg mason
greg mason Dec 05, 2019 8:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
LONDON (Reuters Breakingviews) - Saudi Aramco finally pulled off its $25.6 billion initial public offering. Party time in Riyadh? Probably not, because the world’s biggest stock market listing has in one way accomplished the opposite of its intended goal. . The oil giant priced at the top of its range at a $1.7 trillion valuation, giving Saudi Crown Prince Mohammed bin Salman a bit extra to divert to Public Investment Fund, through which the kingdom hopes to diversify away from an economic dependence on oil. That recovers a little of the pride lost in abandoning plans to list at a $2 trillion valuation, and in selling only 1.5% on the local bourse rather than a previously mooted 5%.
greg mason
greg mason Dec 05, 2019 7:55PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
oil is going to see a bust my opinion, Nat Gas will take off in 2020 and as far as Tariffs the December 15 will be activated and that will inturn spark future trade talks all my opinion.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email