Optimism over trade talks between Beijing and Washington has provided a boost to equities
London (AFP) - Asian and European stock markets mainly rose Tuesday on optimism over trade talks between Beijing and Washington, while Frankfurt won a boost from rising investor confidence, dealers said.
“Equity markets in Europe are higher as the positive move in Asia overnight has rubbed off on European sentiment,” said CMC Markets UK analyst David Madden.
“Firmer property prices in China combined with continued optimism surrounding the US-China trade talks drove Chinese stocks higher. The bullish sentiment spilled over to Europe.”
Asian equities rose, on the eve of vital Chinese first-quarter economic growth data, as investors brushed off a weak lead from Wall Street.
High-level talks between China and the United States aimed at ending their long-running trade war are also being closely followed, with most observers optimistic they would reach a deal.
Both sides have sounded positive, and expectations for a deal have been a key driver of a rally in global markets this year and in offsetting worries about the outlook for the world economy.
In Europe, London’s FTSE 100 won 0.3 percent, helped by news that British employment has reached a record-high level, shaking off uncertainty surrounding Brexit.
And Frankfurt’s DAX 30 index climbed 0.6 percent to make it the best performing market in Europe.
A closely-watched German measure of investor confidence has clambered back into positive territory, data showed Tuesday, pointing to a brighter outlook.
The ZEW institute’s barometer added 6.7 points for a reading of 3.1 in April, it said after its regular monthly polling of around 200 financial players and analysts.
That was the first positive reading for the indicator in just over a year, a period in which threats to growth like Brexit, trade wars and weakness in emerging markets have plagued investors.
- Key China data looms -
Investor focus turns now to China’s economic growth figures on Wednesday, which come after a number of upbeat readings on the world’s number two economy – including factory activity, inflation, new loans and trade – that have given some cause for optimism.
“China has implemented a huge amount of stimulus into the economy more recently to deal with the impact of trade wars and a general synchronised slowdown,” said analyst Sam Buckingham at Thomas Miller Investment.
“We are starting to see the positive signs of this stimulus showing up in some of the country’s soft data series.
“If the hard data, such as GDP growth, does not follow this same path and in fact undershoots expectations, we would expect volatility, i.e. fear, to increase in financial markets.”
- Key figures around 1015 GMT -
London - FTSE 100: UP 0.3 percent at 7,461.32 points
Frankfurt - DAX 30: UP 0.6 percent at 12,091.78
Paris - CAC 40: FLAT at 5,511.07
EURO STOXX 50: UP 0.2 percent at 3,457.72
Pound/dollar: DOWN at $1.3083 from $1.3100 at 2100 GMT on Monday
Euro/pound: UP at 86.39 pence from 86.30 pence
Euro/dollar: DOWN at $1.1302 from $1.1304
Dollar/yen: DOWN at 111.88 yen from 112.04 yen
Tokyo - Nikkei 225: UP 0.2 percent at 22,221.66 (close)
Hong Kong - Hang Seng: UP 1.1 percent at 30,129.87 (close)
Shanghai - Composite: UP 2.4 percent at 3,253.60 (close)
New York - Dow: DOWN 0.1 percent at 26,384.77 (close)
Oil - Brent Crude: DOWN 37 cents at $70.81 per barrel
Oil - West Texas Intermediate: DOWN nine cents at $63.31