- Oil approached its highest levels for the year amid a positive outlook for global markets before US-China trade talks kicked off Wednesday in Washington.
- Asian stocks rallied to seven-month highs following comments from the White House economic adviser Larry Kudlow that the US hoped “to make more headway” in trade talks.
- European stocks shrugged off weak manufacturing data and rose, while US futures pointed to gains.
Global markets are basking in optimism over the outcome of US-China trade talks set to kick off Wednesday in Washington, with the improved sentiment also boosting energy prices.
Brent crude approached its highest levels this year and sat just outside the $US70-a-barrel bracket early Wednesday as tighter supply continued to boost prices. Traders are also positive that the easing trade-war concerns will improve China’s energy demand, similarly aiding prices.
That positivity has been boosted by strong data out of China and a belief that a resolution to the lengthy US-China trade war may be in sight. Asian stocks rallied to seven-month highs following comments from the White House economic adviser Larry Kudlow that the US hoped “to make more headway” in trade talks, Reuters reported.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose to highs not seen since last August on improved sentiment and closed up 0.8%, according to Reuters.
“Whilst traders are starting to look for more solid evidence that a trade deal between the two powers is achievable within the coming months, there is also a sense that investors are looking for any positive rhetoric to sustain the current rally,” according to Jasper Lawler, the head of research at London Capital Group.
Here’s the roundup:
- Brent crude was trading at $US69.75, up 0.6%, as of 8:45 a.m. in London (3:45 a.m. ET). West Texas Intermediate continued its rally and was up 0.3%.
- The Shanghai Composite closed up 1.2% amid a broad improvement in Asian stocks, with South Korea’s KOSPI and Japan’s Nikkei up 1.2% and 1%.
- The Euro Stoxx 50 was up 0.9% as European equities followed Asian markets higher, with the DAX up 1.2% and France’s CAC 40 trading 0.8% higher.
- US futures were following suit, with the Nasdaq up 0.7% while both the S&P 500 and the Dow Jones Industrial Average were up 0.5%.
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