Sep 26, 2019: Stock markets rose Thursday after US President Donald Trump said a trade deal with China could come sooner than expected, and also reported steps towards a new agreement with Japan.

Trump, Wednesday at the United Nations, said a deal with China was getting closer, sending equities higher despite concerns over the launch of an impeachment inquiry against the mercurial leader.

The remarks came just a day after Trump railed against Chinese “abuses” at the UN summit, comments that had been seen as among the factors causing stocks to fall Tuesday.

Connor Campbell, analyst at Spreadex trading group, said “investors chose to buy into Trump's trade optimism, allowing the markets to push higher”.

Trump on Wednesday also said Washington and Tokyo had taken a major step towards sealing a comprehensive new trade deal, which will see Japan cut tariffs on $7 billion of US farm exports while the US would cut tariffs on some Japanese agricultural goods.

– Sliver of optimism' –

“Investors have been 'trade war' bearish for so long that any sliver of optimism is cheered,” Stephen Innes, Asia Pacific market strategist at AxiTrader, said in a note.

The Japanese deal also “suggests the president is open to an 'interim' trade deal, possibly signalling he is willing to negotiate one with China”, Innes said.

European stock markets were firmly in the black in the mid-afternoon, with London the standout, while Wall Street was a touch up at the open.

Earlier, Asian markets had already cheered Trump's comments on trade.

Crude prices slipped after an unexpected rise in US inventory and a swift recovery in Saudi Arabia's output following the September 14 attacks on its oil infrastructure.

The pound, meanwhile, remained under pressure. “It will probably take a Brexit agreement signed and sealed to give it new upside momentum,” said Jeffrey Halley, senior market analyst at OANDA.

– Key figures around 1330 GMT –

• London – FTSE 100: UP 1.1 percent at 7,373.22 points
• Frankfurt – DAX 30: UP 0.5 percent at 12,292.99
• Paris – CAC 40: UP 0.6 percent at 5,619.48
• EURO STOXX 50: UP 0.5 percent at 3,531.37
• New York – Dow: UP 0.2 percent at 27,008.05
• Hong Kong – Hang Seng: UP 0.4 percent at 26,041.93 (close)
• Shanghai – Composite: DOWN 0.7 percent at 2,929.087 (close)
• Tokyo – Nikkei 225: UP 0.1 percent at 22,048.24 (close)
• Euro/dollar: UP at $1.0954 from $1.0944 at 2100 GMT
• Pound/dollar: DOWN at $1.2353 from $1.2355
• Euro/pound: UP at 88.66 from 88.56 pence
• Dollar/yen: DOWN at 107.54 yen from 107.77
• Brent North Sea crude: DOWN 34 cents at $61.09 per barrel
• West Texas Intermediate: DOWN 39 cents at $56.10 per barrel

AFP/APP

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