Stock markets boosted by fresh trade hopes

Aug 30, 2019: Renewed hopes for trade talks boosted stock markets Friday after China said it would not retaliate against the latest US tariffs, setting up a positive end to a volatile week.

New trade optimism helped alleviate gloom about predictions for a coming slowdown in the world economy, analysts said.

"We may be facing up to the reality of recession but optimism continues to flow through the veins of investors following comments from the Chinese Commerce Ministry on Thursday," said Craig Erlam, senior market analyst at Oanda trading group.

The easing tensions helped China's yuan strengthen slightly against the dollar, having fallen to an 11-year low earlier in the week.

Sterling rose after heavy Brexit-fuelled losses earlier in the week.

Across the Atlantic, US stock markets were higher at the opening bell.

Earlier, Hong Kong started Friday more than one percent higher, but finished with a gain of only 0.1 percent as the arrest of activists fuelled fresh worries about violent protests in the city.

Dealers brushed off data Thursday showing the US economy grew at a slower pace than initially thought in the second quarter. Those figures were mitigated by the fact that consumer spending remained strong.

Elsewhere, oil prices slid after a three-day surge on positivity surrounding trade talks was coupled with a plunge in US stockpiles that pointed to improving demand.

On the corporate front, shares in Airbus were up 0.6 percent to 126 euros in early afternoon Paris trading.

The European aircraft manufacturer earlier said it had agreed to sell 42 planes to Malaysian low-cost airline AirAsia X in a deal worth $5.0 billion before expected discounts.

The Asian carrier has placed a firm order for 12 long-range A330neo planes and 30 medium-range A321XLR models.

- Key figures around 1330 GMT -

• London - FTSE 100: UP 0.7 percent at 7,233.08 points
• Frankfurt - DAX 30: UP 1.2 percent at 11,977.10
• Paris - CAC 40: UP 0.9 percent at 5,497.32
• EURO STOXX 50: UP 0.8 percent at 3,439.38
• New York - Dow: UP 0.6 percent at 26,512.23
• Tokyo - Nikkei 225: UP 1.2 percent at 20,704.37 (close)
• Hong Kong - Hang Seng: UP 0.1 percent at 25,724.73 (close)
• Shanghai - Composite: DOWN 0.2 percent at 2,886.24 (close)
• Euro/dollar: DOWN at $1.1042 from $1.1057
• Dollar/yen: DOWN at 106.20 yen from 106.51 yen
• Pound/dollar: DOWN at $1.2189 from $1.2182 at 2100 GMT
• Euro/pound: DOWN at 90.59 pence from 90.76 pence
• Brent North Sea crude: DOWN 15 cents at $60.34 per barrel
• West Texas Intermediate: DOWN 32 cents at $56.39 per barrel

AFP/APP