Trade News Lifts Equities, Bank Scandal Widens In Europe, Asian Markets Hopeful
Global Equities Up On Trade News
A round of positive trade news reveals U.S./China trade tensions are easing. Trade Ambassador Lighthizer and Secretary of the Treasury are both in Beijing now. Mnuchin says they had a very productive working dinner last night. This news comes after word the Chinese had made unprecedented concessions regarding technology and forced transfers. Compounding this news is a pledge from Chinese Premier Li Keqiang. Li says he will open Chinese markets for more foreign investment in insurance and investment.
The U.S. futures were the softest hit but up roughly 0.40% across the board. The blue-chip Dow Jones Industrials was in the lead. The sentiment was dampened by weaker than expected data. The Personal Income and Spending data shows income gains and spending were both up but weaker than expected in February. The data is consistent with a recent slowing in other data points but was shrugged off in favor of trade developments. On the inflation front, the core PCE Price Index was also weaker than expected.
In stock news shares of Carmax surged to the top of the charts after reporting earnings. The used-car dealer missed on earnings but easily beat EPS estimates. The company says traffic is a bit lighter than expected but the people they get are buyers. Shares of Wells Fargo also moved higher in early trading. The embattled banks CEO Tim Sloan announced he is retiring.
Europe High On Trade Hopes, Brexit Deadlock Continues
European markets were broadly higher in early Friday trading. The DAX was in the lead with a gain of 0.85% at midday with the French CAC right behind. The U.K. FTSE 100 was the day’s laggard with a gain of only 0.25%. Sentiment in the U.K. is optimistic but hampered by ongoing deadlock in Parliament. The MPs can’t decide what they want to do about Brexit and the deadline, previously today, can’t be extended indefinitely. Theresa May is expected to re-introduce a light version of her Brexit deal today but it is unlikely it will pass. Even if it does the EU is unlikely to accept it.
In stock news shares of Swedbank and Danske Bank were sharply lower. Both banks have come under fire regarding money laundering and the scandal is widening. Today Swedbank received notification from the NY financial regulator it was interested in information about the bank’s dealings with Norske Bank. On the economic front, German Retail Sales came in above expectation.
Chinese Equities Surge On Trade News
Asian markets were broadly higher in Friday trading with the Chinese indices in the lead. The Shanghai and Shenzen Composites both posted gains above 3.0% on the news progress was being made. Market participants are hopeful a deal will be announced soon. Some observers speculate a major win-win both sides can claim as a victory is the most likely outcome. Shares in Hong Kong were the next strongest performers and pushed the Hang Seng up by nearly a full percent. The Korean Kospi advanced a cooler 0.59% while the Australian ASX advanced a microscopic 0.07%.
This article was originally posted on FX Empire
More From FXEMPIRE:
Silver Price Forecast – Silver markets rallied slightly on Friday
S&P 500 Weekly Price Forecast – Stock markets continue to grind higher
Crude Oil Price Forecast – Crude oil markets continue to show resilient behavior
AUD/USD Weekly Price Forecast – Australian dollar continues to chop
Silver Weekly Price Forecast – Silver markets fall significantly for the week
