Trump-Xi agreement lifts global equities
Dollar strengthening reverses
US stock market extended gains on Monday after President Trump and Chinese leader Xi Jinping agreed over the weekend to launch negotiations to settle trade disagreements while suspending application of any new tariffs for 90 day period. The S&P 500 rose 1.1% to 2790.37. Dow Jones industrial gained 1.1% to 25826.43. The Nasdaq composite index rallied 1.5% to 7441.515. The dollar weakened on mixed data as Institute of Supply Management’s PMI gauge rose to 59.3 in November while construction spending fell 0.1% on month in October: the live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, fell 0.2% to 96.92 and is lower currently. Futures on three main US stock indexes indicate lower openings today.
DAX 30 leads European indices gains
European stocks recovered on Monday as investors optimism was boosted by US-China trade war truce news. The EUR/USD turned higher while GBP/USD slowed its slide with both currently rising. The Stoxx Europe 600 index gained 1%. The DAX 30 rallied 1.9% to 11465.46 and France’s CAC 40 added 1%. UK’s FTSE 100 rose 1.2% to 7062.41.
Shanghai Composite leads Asian indices gains
Asian stock indices are mixed today. Nikkei fell 2.4% to 22036.05 as yen‘s climb against the dollar accelerated. Chinese shares are gaining: the Shanghai Composite Index is up 0.4% and Hong Kong’s Hang Seng Index is 0.1% higher. Australia’s All Ordinaries Index pared over half of previous session gains as it fell 1% with Australian dollar continuing its climb against the greenback.
Brent futures prices are edging higher today on expected OPEC-led crude output cuts and a cutback in output in Canadian province of Alberta. Prices rallied yesterday on news Russia, Saudi Arabia agreed to extend output cuts on the sidelines of the weekend G-20 summit: February Brent crude jumped 3.8% to $61.69 a barrel on Monday.
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