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On 18 February 2019 - Global markets optimistic about US-China trade talks

Fidelity

Fidelity - Research team

US markets were closed for the President’s Day holiday. 

European markets

European stocks finished firmer Monday, but the main index hovered at the best levels in four months as, investors continued to watch trade negotiations between the US and China unfold, hoping for upbeat news. The Stoxx Europe 600 index rose by 0.2%, after the index finished at a four-month high on Friday. Italy’s FTSE MIB climbed 0.6%, while Spain’s IBEX 35 index and France’s CAC 40 rose 0.3%. The FTSE 100 was down 0.3% while Germany’s DAX 30 finished flat.

Fintech Wirecard AG jumped by 15% after Germany’s financial regulator banned investors from shorting its shares. Faurecia S.A. jumped 1.3%, after the French car maker said net profit rose in 2018. Meanwhile, Austria’s chipmaker AMS AG rose by nearly 4%, after a report the company is trying to diversify away from Apple Inc.’s iPhone given its recent sales slowdown. Reckitt Benckiser Group PLC added over 5% after the consumer goods company announced a surge in annual revenue and profit after “broad-based growth” across key brands. The auto sector led the downside, with shares of Volkswagen AG down over 1% and Daimler AG down just under 1% after the US Commerce Department on Sunday reportedly sent a national security report to President Donald Trump offering recommendations over new tariffs on imported autos and auto parts. In UK banking, Barclays PLC lost 0.9% after one of its biggest shareholders Tiger Global PLC reportedly sold its entire $1 billion stake in the UK bank. 

Asia Pacific Markets

Asian markets were broadly higher on Monday as traders looked forward to the continuation of trade talks between Chinese and American officials in Washington this week. After the markets closed on Friday, China and the US announced plans to resume trade negotiations in Washington, fueling hopes that both countries were edging toward a deal. A tariffs truce expires March 2 and will leave the US free to more than double import taxes on $200 billion in Chinese goods. President Donald Trump has said he may hold off on these if the country was close to a deal with China.

South Korea’s Kospi jumped 0.7% and the Shanghai Composite index rose 2.6%. Hong Kong’s Hang Seng was 1.6% higher while Australia’s S&P/ASX 200 gained 0.4%. Japan’s benchmark Nikkei 225 advanced 1.8%. The country said its core machinery orders dropped 0.1% in December from the previous month, beating forecasts of a 1.1% decline. Shares rose in Taiwan and throughout South East Asia.

Among individual stocks, Uniqlo owner Fast Retailing jumped in early trading in Tokyo, as did Bridgestone and Japan Steel. Oil producers CNOOC and PetroChina rose in Hong Kong, along with tech companies Sunny Optical and Tencent. Samsung rose in Korea, as did Taiwan Semiconductor in Taiwan. Oil companies such as Woodside Petroleum, Beach Energy and Santos jumped in Australia.

Looking forward

Japan’s trade data, UK industrial trends orders and US mortgage applications data are due to be released tomorrow.

Global Stock Markets

as at 18/02/19
Source: Datastream, Price Index Returns in local currency. Past performance is not a reliable indicator of future results

 

Market

Close as at 18/02/19

% change
18/02/19

Net change

US

US: Dow Jones **

25883.3

0.00

0.00

US: S&P 500 **

2775.6

0.00

0.00

Nasdaq: NASDAQ **

7472.4

0.00

0.00

Europe

MSCI Europe

1529.0

0.14

2.15

UK: FTSE All Share

3951.8

-0.07

-2.78

UK: FTSE 100

7219.5

-0.24

-17.21

Germany: DAX

11299.2

-0.0

-0.60

France: CAC 40

5168.5

0.30

15.35

Netherlands: All Share

798.6

0.18

1.47

Italy: S&P MIB

20329.8

0.58

117.49

Switzerland: SMI

9267.5

0.27

25.34

Spain: IBEX 35

9155.5

0.35

32.30

Sweden: OMX

1583.9

0.00

0.04

Asia

Japan: Nikkei

21281.9

1.82

381.22

MSCI Asia Pacific ex Japan

571.4

0.79

4.46

Hong Kong: Hans Seng **

28347.0

1.60

446.17

Australia: S&P/ASX 200

6089.8

0.39

23.70

China: Shanghai Shenzhen 300

3445.7

3.21

107.04

*This reflects the % amount that each market has fallen since its highest point in the last 12 months.
** US markets were closed for President’s Day

Note: all releases are listed in local time.

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