Global Markets Are On The Rise, Trade Talks Are Confirmed, Political Fears SubsideGlobal markets rebound on trade hopes and political reprieve but the underlying causes for economic instability remain.
The U.S. Futures Are Up Strongly In Early Thursday Trading
The U.S. indices are looking at a positive open on Thursday after a series of positive news events lifted sentiment. The primary driver of today’s move is the confirmed meeting between Chinese and U.S. trade delegates next month. The meeting is scheduled to take place in Washington and may bring positive developments on the trade front. In economic news, the ADP employment report and initial claims data both confirm strength in the U.S. labor market. The ADP figure came in much stronger than expected at 195,000 while initial claims continue to trend near a 5-decade low.
The tech-heavy NASDAQ Composite is in the lead with a gain near 1.10%. the Dow Jones Industrial Average and S&P 500 both trail with gains near 0.85%. Semiconductors and financials both showed strength with gains near 1.0%. Today’s move follows another strong up-day in the market, one driven by positive news in the FOMC’s Beige Book report. The Beige Book shows some slowing in the manufacturing sector but the overall economy remains strong. Tightness in the labor market persists and is expected to drive wage inflation.
EU Markets Are Mixed On Thursday
The EU markets are mixed on Thursday despite positive developments in geopolitics. The DAX and CAC are both up with gains in the range of 0.90% to 1.00% while the FTSE trails with a loss. The FTSE is down about -0.70% on Brexit angst, the successful takeover of government by parliament soothes fears of a hard-Brexit both only further uncertainty around said event. In more positive news, the Italian coalition between the anti-establishment 5-Star party and the center-left Democratic Party was unveiled.
In stock news, shares of Dassault Aviation are among the days best performers. The aviation giant posted better than expected first half results and sent its shares up about 8.0%. Shares of Equinox were equally buoyant. The oil producer said it will start production at a new field early and its shares shot up 8.0%.
Asian Markets Higher, Hong Kong In Focus
Asian markets are broadly higher following Thursday’s session as trade hopes and geo-politics lift spirits. The only index to post a loss was the Hang Seng and that only -0.03%. The small loss is not unexpected as the index posted a 4.0% gain in the previous session. Other indices in the region saw gains in the range of 0.80% to 2.12%, the Nikkie is today’s leader; most others in the region advanced about 0.80% to 0.90%.