The Breakfast Briefing: Global Stocks Resume Climb On Trade Hopes

Ted

FYI: Global stocks climbed Wednesday on renewed hopes for a trade deal between the U.S. and China and after economic data earlier in the week eased fears of a global downturn.

The pan-continental Stoxx Europe 600 was up 0.8% in early trade. In Asia, Japan’s Nikkei 225 and Hong Kong’s Hang Seng both gained 1%.

U.S. futures pointed to opening gains of 0.4% for both the Dow Jones Industrial Average and the S&P 500.

“Trade talks between China and the U.S. have, for now, produced positive news as a deal has moved closer,” said Carsten Brzeski, chief economist at ING Germany.

In Europe, U.K. Prime Minister Theresa May said late Tuesday she would seek bipartisan talks with the opposition Labour Party to try to break a deadlock on the country’s departure from the European Union.

The pound gained 0.4% against the dollar to trade at $1.3187, while the U.K.’s FTSE 100 was broadly flat. The WSJ Dollar Index, which measures the greenback against 16 of its peers, shed 0.2%.

Yields for 10-year U.S. Treasurys edged higher Wednesday to 2.520%, up from 2.478% on Tuesday afternoon. Bond prices and yields move in opposite directions.

In commodities, Brent crude, the global benchmark, traded 0.7% higher at $69.81 a barrel. Gold edged 0.1% higher to $1297.20 an ounce.
Regards,
Ted

WSJ:
https://www.wsj.com/articles/global-stocks-resume-climb-on-trade-hopes-11554278459

Bloomberg:
https://www.bloomberg.com/news/articles/2019-04-02/asia-stocks-face-mixed-start-treasuries-climb-markets-wrap?srnd=premium

CNBC:
https://www.cnbc.com/2019/04/03/stock-market-futures-rise-on-hopes-us-china-are-close-to-trade-deal.html

U.K.:
https://uk.reuters.com/article/uk-britain-stocks/exporter-heavy-ftse-100-snaps-four-day-rally-as-potential-brexit-delay-lifts-pound-idUKKCN1RF0P0

Europe:
https://www.reuters.com/article/us-europe-stocks/european-shares-climb-for-fourth-day-on-trade-optimism-china-data-idUSKCN1RF0S0

Asia:
https://www.marketwatch.com/story/asian-markets-rise-on-report-of-us-china-trade-deal-progress-2019-04-02/print

Bonds:
https://www.cnbc.com/2019/04/03/bond-market-treasury-yields-jump-on-us-china-trade-deal-hopes.html

Currencies:
https://www.cnbc.com/2019/04/03/forex-market-dollar-moves-us-bond-yields-in-focus.html

Oil:
https://www.cnbc.com/2019/04/03/oil-market-us-sanctions-opec-supply-cuts-in-focus.html

Gold:
https://www.cnbc.com/2019/04/03/gold-market-brexit-uncertainty-us-china-trade-talks-in-focus.html

Current Futures:
https://finviz.com/futures.ashx