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(Bloomberg) – Asian equities and US equity futures climbed after China announced trade talks with US counterparts next month, bolstering global equity growth amid improved investor confidence . The yuan has risen and the dollar has stabilized after posting the biggest drop since June.
The futures on the S & P 500 index rose to around 1% and the yen depreciated with Treasury bills. Japanese stocks outperformed and also advanced in Australia and South Korea. China has announced that its trade negotiators will visit Washington early next month for talks with their US counterparts, which, according to investors, increases the chances of resolving the tariff war after weeks of uncertainty and uncertainty. d & # 39; climbing.
Hong Kong shares posted more modest gains after the 4% rise recorded yesterday, when city leader Carrie Lam officially withdrew controversial legislation that would have allowed extradition to the mainland. The pound sterling rose after the British parliament rejected Prime Minister Boris Johnson's call for early elections and took further steps to block a Brexit without imminent agreement.
The stock rally has brought the S & P 500 index to less than 3% from an all – time high, as the risk of events seems to be easing, going from bad to worse. a possible Chinese crackdown in Hong Kong on clashes between the European Union and two of its biggest members. At the same time, investors remain alert to any news regarding US-China trade and signals from the US Federal Reserve that mitigation of the economic downturn this year may be mitigated. .
"Rather than being afraid of the markets because of this volatility, it's time to take advantage of it," said Ann Miletti, a portfolio manager at Wells Capital Management, Bloomberg TV. "I will keep the word to the Fed and hope that they will take the measures that are imposed."
At the same time, China said that a reduction in the amount of funds that banks must keep in reserve is underway. The Council of State Affairs said it wanted a "timely" reduction of large, targeted bank reserve ratios, as well as the use of other tools to support the bank. ;economy. The calls come as more and more economists lower their GDP forecasts for 2020 to less than 6%.
Elsewhere, oil has surpassed $ 56 a barrel after the announcement of the trade. In the United States, while Florida orange groves appear to be escaping the damage caused by Hurricane Dorian, concerns are now turning to soybean, corn and cotton fields, as well as livestock in Georgia and the Carolinas, as the storm heads north. Platinum futures have exceeded $ 1,000 an ounce.
Here are some key events to come:
Fed Chairman Jerome Powell will be among the speakers this week. The US employment report on Friday is expected to show that non-farm payroll, largely monitored, increased by 160,000 in August, up from 164,000 the previous month. According to estimates, unemployment is expected to remain stable at 3.7% and the growth rate of the average hourly wage is expected to slow to 3.0%.
These are the main movements on the markets:
stocks
Japan's Topix index rose 1.6%. The Hang Seng Hong Kong index rose 0.5%. The Australian S & P / ASX 200 index rose 1%. The Kospi index of South Korea has increased by 1.2%. The futures on the S & P 500 index rose 1%. The underlying gauge rose 1.1% on Wednesday.
Coins
The yen fell 0.3% to 106.69 dollars. The offshore yuan rose 0.2% to $ 7.1313. The Bloomberg Dollar Spot index has stabilized after falling 0.6%, the largest decline since June 20th. The euro bought 1,1037 USD. .
Obligations
The yield on 10-year Treasuries rose five basis points to 1.52%. Australia's 10-year yield rose six basis points to 0.99%.
Basic products
West Texas Intermediate crude rose 0.5% to $ 56.53 per barrel. Gold fell 0.5% to $ 1,544.19 an ounce.
– With the help of Randall Jensen and Vildana Hajric.
To contact the reporters on this story: Adam Haigh in Sydney at [email protected], Andreea Papuc in Sydney at [email protected]
To contact the makers of this story: Christopher Anstey at [email protected], Cormac Mullen, Joanna Ossinger
For more articles like this, go to bloomberg.com
© 2019 Bloomberg L.P.
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