Global Stocks Rise With U.S.-China Trade Talks in Focus
February 11 2019 - 4:52AM
Dow Jones News
By Akane Otani
Global stocks mostly rose Monday as investors await the upcoming
round of trade negotiations between the U.S. and China.
The Stoxx Europe 600 advanced 0.9%, lifted by the performance of
shares in commodity and technology companies.
Asian stocks were mixed, with the Shanghai Composite rallying
after reopening for the Lunar New Year holiday, while indexes in
Australia and India ended lower.
Investors are set for the latest round of trade talks between
Washington and Beijing, with U.S. trade representative Robert
Lighthizer and Treasury Secretary Steven Mnuchin expected to arrive
in the Chinese capital sometime on Monday.
The talks could spark fresh volatility for financial markets.
Stocks rose in January on fresh hopes that the U.S. and China would
be able to carve out a trade deal, but some of that optimism
appeared to lose steam last week as investors parsed a stream of
downbeat economic data.
Data Monday showed U.K. gross domestic product grew last year at
the slowest pace since 2012. The British pound fell to session lows
following the report, recently trading down 0.3% against the U.S.
dollar. The FTSE 100--whose multinationals tend to benefit from a
weaker pound--jumped 1.1%.
"There's this belief that this is going to very quickly resolve
itself, and I think the reality is that there are very complicated
long-term issues on the trade relationship between the two most
powerful economies around the world," said Jonathan Golub, chief
U.S. equity strategist at Credit Suisse.
While economic growth in the U.S. still looks relatively steady,
Mr. Golub cautioned that an unexpected breakdown in trade talks
remain a major market risk.
"I'm actually quite optimistic about the broad backdrop -- but
that doesn't mean that there's no risk," he said.
Corporate news drove swings in individual stocks on Monday.
Gold miner Acacia Mining rose 0.4% after breaking out to a
profit in 2018, while online food delivery service Just Eat jumped
1.9% after a major shareholder urged it to seek a merger.
Later Monday, investors are expected to get earnings reports
from Loews and Restaurant Brands, the parent company of Burger
King, Tim Hortons and Popeyes.
U.S. stock futures pointed to a higher opening, with S&P 500
futures rising 0.4% and the Dow Jones Industrial Average futures
adding 0.3%. Changes in futures don't necessarily reflect moves
after the opening bell.
Elsewhere, the Shanghai Composite jumped 1.4% to a two-month
high, while Japan's Nikkei Stock Average was shut for a holiday and
Hong Kong's Hang Seng rose 0.6%.
Write to Akane Otani at akane.otani@wsj.com
(END) Dow Jones Newswires
February 11, 2019 05:37 ET (10:37 GMT)
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