OPENING CALL: The Australian share market is expected to open higher. The SPI200 futures contract expected to open up 10 points.
China’s Commerce Ministry said Beijing and the U.S. have agreed to lift some tariffs on one another in stages if the two countries reach a partial trade deal, a goal both have been building toward since October.
PG&E Corp. reported a $1.6 billion third-quarter loss as the costs of wildfires, bankruptcy and blackouts weighed on the beleaguered California utility.
Each Market in Focus
Solid gains by the big banks led a broad advance for Australian shares, helping the local market outperform most others in the region.
Closing near the session high, the S&P/ASX 200 advanced 1.0% to 6726.6. National Australia Bank rallied 2.2% as investors were relieved it didn’t follow rival Westpac with its own big share issue to raise capital, while the other major banks gained 0.4%-1.3%. South32 jumped 2.6% on news it signed a deal that could see it exit its South African coal business.
The tech sector also logged a big rise thanks to Xero’s 9.6% rise after its first-half results. Only the energy subindex lost ground, falling 0.7% after crude weakened overnight.
U.S. stocks climbed intraday as signs of progress in trade talks with China fueled investors’ appetite for risky assets.
The Dow Jones Industrial Average gained 242 points, or 0.9%, in early-afternoon trading. The S&P 500 advanced 0.5%, while the tech-heavy Nasdaq Composite was up 0.7%.
All three indexes are trading at records, lifted by a resilient U.S. jobs market, a series of interest-rate cuts by the Federal Reserve, hopes that the trade spat with Beijing is easing and a strong corporate earnings season.
Gold futures dropped to post their lowest finish in three months and largest weekly percentage decline in more than a year.
Renewed optimism about a near-term, partial U.S.-China trade agreement stirred a rise in debt yields, dulling the appeal of precious metals. China and the U.S. agreed to lift some tariffs on one another in stages if the two countries reach a partial trade deal.
Oil futures climbed to recoup most of their losses from a day earlier, after China and the U.S. agreed to lift existing tariffs if a partial trade deal is struck soon.
West Texas Intermediate crude for December delivery rose 80 cents, or 1.4%, to settle at $57.15 a barrel on the New York Mercantile Exchange, recovering most of its 1.5% loss on Wednesday.
The British pound fell 0.3% against the dollar after Bank of England Governor Mark Carney hinted at a possible rate cut.
The WSJ Dollar Index, which measures the U.S. dollar against a basket of currencies, recently ticked up 0.08% to $90.91.
The STOXX Europe 600 Index was up 1.49 points, or 0.37%, to 406.56. London stocks closed higher as global markets rose amid signs of progress in trade talks between Washington and Beijing. The FTSE 100 rose 0.1% to 7406.41. Insurer RSA Insurance and house builder Persimmon topped the list of FTSE 100 gainers, up 4% and 3.8%, as investors cheered the pair’s third-quarter updates. Insurer Hiscox was the biggest blue-chip faller, down 9.7%.
The French CAC was up 24.25 points, or 0.41%, to 5890.99 while the German DAX was up 109.57 points, or 0.83%, to 13289.46.
Japan’s Nikkei Stock Average closed 0.1% higher at 23330.32 amid investors’ concern over a possible delay of an initial U.S.-China trade deal. Automobile stocks were mixed, with Nissan Motor down 0.8% and Honda Motor 0.6% lower, while Toyota Motor gained 1.1% following its second quarter earnings.
South Korean stocks close almost unchanged, with the benchmark Kospi index inching up 0.14 point, or 0.01%, to 2144.29. Stocks were mixed, with telecom stocks driving the gains, while tech shares led the declines.
Hong Kong shares rose after a dull start as investors cheered news that the U.S. and China agreed to lift existing tariffs in stages. The Hang Seng Index, which started to climb after the news broke in the afternoon, ended up 0.6% at 27847.23, rising for the sixth consecutive session.
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