admin As anticipation developed that a U.S.-China trade deal would soon be signed, on Friday, world stocks climbed record highs and oil prices remain flexible in a holiday-shortened week.
Since the financial crisis European shares were on course for their best year. With the help of gains in export-heavy German shares, the pan-European STOXX 600 index was up 0.2%. The benchmark index has reached record highs for three sessions in a row.
Adding 0.4% FTSE 100 set for its best run in three years. Mining companies provided the biggest boost, with Glencore Pic and BHP Group Pic climbing about 2% each.
Across Asia, a positive tone was set. Outside Japan, MSCI’s broadest index of Asia-Pacific shares jumped 0.8% to 555.39, a level not seen since mid-2018 which is up 15.5% so far this year.
Even though for the week the index was up 0.1%, China’s blue-chip CSI300 was down 0.1% on Friday.
From November, the profits at industrial companies in China growing at the fastest pace in eight months, breaking a three-month declining streak, as production and sales quickened. But broad weakness in domestic demand remains a risk for earnings next year, say, analysts.
Since the Sino-U.S. trade war had faded the investor confidence, rally in global shares contrasts with a plunge late last year. The worries minimize capital expenditure plans over much of 2019, but signs of an improving global economy and strong employment suggest that will change next year. Along with trade-related optimism, the U S. Federal Reserve’s policy easing, economic data that have come in above expectations & corporate profits have helped lift stocks this year. To watch whether sentiment among companies has been improved or not, markets are now waiting for January’s fourth-quarter financial results. But some analysts are cautious about risks ahead in 2020, Piotr Matys, FX strategist at Rabobank wrote in a research note, “The trade war… is far from over”. He added “In our view, this is just a temporary truce. Another unsolved major issue is Brexit. Geopolitical risk can suddenly resurface.”
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