Global Stocks Gain as China Moves to Boost Intellectual Property Rights
November 25 2019 - 6:53AM
Dow Jones News
By Caitlin Ostroff
Global stocks rose Monday after China said it would step up
intellectual property protection and enforcement, a move that
investors hope may address one of the key concerns for U.S.
negotiators on the trade deal.
Futures linked to the Dow Jones Industrial Average edged up
0.3%, while the Shanghai Composite Index ended the day up higher
0.7%. The pan-continental Stoxx Europe 600 Index rose 0.8%, led by
gains in the basic resources and travel and leisure sectors.
China's government called for speeding up the introduction on
penalties and punitive action for infringement of patents and
copyrights in a document released Sunday.
That step has cheered markets as better protection of
intellectual property rights is among a host of issues that are
being negotiated between the world's two largest economies. The
U.S. has indicated it wants clearer assurances that China will
follow through on the commitments it has made on the issue, and on
others such as agricultural purchases, before negotiators will
travel to Beijing for a new round of talks for a "phase one" trade
deal.
"People think China is willing to make concessions," said Lewis
Grant, a portfolio manager at Hermes Investment Management. "It
shows a willingness on China's part to come to the table and keep
talking."
The optimism about prospects for the trade talks boosted
markets' appetite for riskier assets, and sapped demand for haven
investments. The yield on the 10-year German bund rose to minus
0.351%, from minus 0.358% Friday, while the rate on 10-year U.S.
Treasurys rose to 1.786%, from 1.772% Friday. Gold prices fell
0.4%.
Ahead of the opening bell, shares in Uber Technologies dropped
3.9% after the ride-sharing company lost its license to operate in
London, one of its biggest markets. The firm, which has pledged to
fight the regulator's decision, can continue to operate until the
appeal process is completed.
A pickup in deal making activity also led to big swings in some
stocks in offhours trading. Shares in Tiffany were buoyed 5.8%
after LVMH Moët Hennessy Louis Vuitton said it reached an agreement
to buy the U.S. jeweler for more than $16 billion. LVMH shares
gained 2% in Paris. Shares in Medicines Co. rose over 22% in
offhours trading after Switzerland's Novartis agreed to buy the
cholesterol-drugmaker for nearly $10 billion.
Charles Schwab declined less than 1% in premarket trading after
it agreed to buy smaller rival TD Ameritrade Holding in a
stock-swap transaction valued at about $26 billion.
Over in the U.K., the pound rose almost 0.4% against the U.S.
dollar as the Conservative Party maintained a lead in weekend
opinion polls after unveiling its manifesto for the Dec. 12 general
elections. Prime Minister Boris Johnson on Sunday made a series of
spending pledges and ruled out increases in income tax. The FTSE
100 index advanced 0.9%.
Write to Caitlin Ostroff at caitlin.ostroff@wsj.com
(END) Dow Jones Newswires
November 25, 2019 07:38 ET (12:38 GMT)
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