World Stock Markets Sustained by Traders Optimism

AFP / 03:40 PM November 06, 2019

Global stock markets posted mostly modest gains Tuesday as dogged trade optimism roused those ready to take on more risk.

Global bourses sailed higher Monday amid anticipation that economic superpowers China and the United States were close to breaking a deadlock in trade talks.

Those gains were largely buttressed Tuesday by reports that US President Donald Trump might remove or roll back some tariffs on Chinese goods, and cancel those planned for next month.

So, we are to believe half the nation wants to remove the president who gave us a record stock market, record low unemployment and a 5% increase in wages because of a 5 minute phone call?

BULLSH*T.

— Bill Mitchell (@mitchellvii) November 3, 2019

“Put simply, it has been another risk-on day,” remarked Fawad Razaqzada, an analyst at Forex.com.

Markets also rose on a reported easing in China’s one-year lending rate, while London traders welcomed a survey that showed Britain’s crucial services sector had avoided a contraction in October.

The Financial Times and Wall Street Journal reported Tuesday that the White House is considering dropping existing tariffs on more than $100 billion of imports to seal a mini deal with China that has teased investors many times already.

“The US and China seem to be inching closer to sealing the phase one deal, although there are still hurdles,” said Neil Wilson at Markets.com.

The FT cited unnamed sources as saying officials were looking at rolling back levies on a range of imports including clothing, appliances, and flat-screen monitors that have been subject to 15-percent rates since September 1.

In Asia, Tokyo led gainers as it reopened after a long weekend to play catch-up with Monday’s rally.

The Nikkei ended 1.8 percent higher, while Shanghai rose 0.5 percent and Sydney added 0.2 percent.

Hong Kong won 0.5 percent as investors brushed off data showing a key measure of business confidence fell to its lowest level in more than a decade as the city reels from global trade woes and violent protests.

Trading was moderately upbeat in New York, with the blue-chip Dow index edging up 0.1 percent to a record for a second straight session after a survey by the Institute for Supply Management showed activity in the US service sector jumped unexpectedly in October, a welcome sign of sustained growth.

The dollar also gained ground.

Among individual stocks, Dow member Boeing rose 2.1 percent after Chairman David Calhoun gave a forceful vote of confidence in CEO Dennis Muilenburg and said the 737 MAX was on track to receive regulatory approval this year to return to service after two deadly crashes.