FYI: U.S. stocks soared Friday on hopes of progress in the trade talks between the U.S. and China, putting the S&P 500 on track to break a three-week losing streak.
President Trump offered an upbeat assessment of trade talks and said he would meet with Chinese Vice Premier Liu He on Friday. Investors are hoping that the two countries reach a compromise and that Beijing’s emissaries are ready to offer compromises to prevent Mr. Trump from raising tariff levels next week and imposing new ones in December.
On Friday morning, he said on Twitter that “good things are happening at China Trade Talk Meeting. Warmer feelings than in recent past, more like the Old Days.”
The Dow Jones Industrial Average advanced 319 points, or 1.20%. The S&P 500 surged 1.09% on broad-based gains. Both indexes were on track to avert a fourth straight week of losses. The Nasdaq Composite added 1.34%.
Shares of industrials companies were some of the largest gainers in the S&P 500, outpacing the broader index’s gains. Caterpillar, which has been a bellwether stock for trade, added 5.1%. Apple shares rose 2.3%, on track for a fresh record.
Hong Kong’s Hang Seng rose 2.3% and the Shanghai Composite gained 0.9%.
The yield on the 10-year Treasury note rose to 1.736% in early trading Friday, according to Tradeweb, from 1.649% Thursday. The Federal Reserve said on Friday that it will start buying Treasury bills to boost its balance sheet to avoid the unexpected strains in money markets experienced last month.
Global stocks and bond yields rose as well as tensions in Europe calmed. The British pound jumped against the dollar, while shares of U.K. banks and homebuilders lurched higher Friday as investors grew more optimistic about the U.K.’s divorce deal with the European Union.
The pound’s gains followed its largest one-day jump since March on Thursday as Brexit talks progressed between the U.K. and Ireland. British Prime Minister Boris Johnson and his Irish counterpart, Leo Varadkar, unexpectedly said they saw a chance of a Brexit deal. On Friday, European Council President Donald Tusk said he saw “promising signals” from the talks.
The yield on the 10-year U.K. gilt continued to climb, rising to 0.686% from 0.462% Wednesday.
Meanwhile, the yen fell to its lowest level against the U.S. dollar since August, while gold prices dropped 0.9%.
Still, some investors said it was too soon to wager on a cease-fire between the U.S. and China, given how turbulent negotiations have been.
Crude oil prices also gained after an Iranian tanker near the Saudi Arabian coast suffered damage Friday in what the ship’s owner suggested may have been a missile attack.
Regards,
Ted
MarketWatch:
https://www.marketwatch.com/story/dow-futures-jump-250-points-as-china-no-2-set-to-meet-trump-in-final-day-of-trade-talks-2019-10-11/printWSJ:
https://www.wsj.com/articles/stocks-rally-on-u-s-china-trade-talk-hopes-11570782814?mod=hp_lead_pos1Bloomberg:
https://www.bloomberg.com/news/articles/2019-10-10/asia-stocks-to-rise-as-trade-talks-go-into-friday-markets-wrap?srnd=premiumIBD:
https://www.investors.com/news/economy/china-trade-deal-impact-us-economy-dow-jones/CNBC:
https://www.cnbc.com/2019/10/10/stock-futures-open-higher-after-optimistic-trump-comments-on-us-china-trade.htmlReuters:
https://uk.reuters.com/article/us-usa-stocks/wall-street-rallies-on-trade-deal-hopes-focus-shifts-to-trump-liu-meeting-idUKKBN1WQ1K8U.K:
https://uk.reuters.com/article/uk-britain-stocks/brexit-deal-hysteria-sparks-dramatic-gains-for-uk-stocks-idUKKBN1WQ0SMEurope:
https://www.reuters.com/article/us-europe-stocks/european-shares-soar-on-rising-hopes-of-brexit-trade-deal-idUSKBN1WQ0S9Asia:
https://www.cnbc.com/2019/10/11/asia-markets-october-11-us-china-trade-talks-oil-currencies.htmlBonds:
https://www.cnbc.com/2019/10/11/us-treasurys-investors-track-us-china-trade-talk-progress.htmlCurrencies:
https://www.cnbc.com/2019/10/11/forex-markets-brexit-us-china-trade-in-focus.htmlOil
https://www.cnbc.com/2019/10/11/oil-prices-jump-after-iran-says-two-missiles-struck-tanker.htmlGold:
https://www.cnbc.com/2019/10/11/gold-markets-us-china-trade-brexit-in-focus.htmlCurrent Futures:
https://finviz.com/futures.ashx 
