Global Equities Gain On Trade Deal, Chinese Data

Global equities gain on trade deal, Chinese data

Global equities rose on Friday as landmark China-US trade deal and Chinese economic data brightened the global outlook

London, (UrduPoint / Pakistan Point News - 17th Jan, 2020 ) :Global equities rose on Friday as landmark China-US trade deal and Chinese economic data brightened the global outlook.

European markets were all higher after the Chinese economy appeared to be stabilising.

"China released some broadly positive economic reports, which has boosted sentiment around the globe," said CMC Markets analyst David Madden.

Wall Street sentiment was also broadly upbeat in midday trading, with the Dow index building on record highs reached Thursday on the back of the trade deal and Google parent Alphabet joining Apple and microsoft to become a trillion-dollar firm for the first time.

The positive energy was felt earlier in Asia, where the main stock markets ended the week on an upbeat note.

Apart from a blip last week caused by the US assassination of Iran's top general, markets have had a strong start to the new decade, building on the rally of late 2019.

The gains have been fanned by the "phase one" trade agreement as well as signs of improvement in various economies, lower interest rates, government stimulus and easing Brexit concerns.

The prospect of a healthy batch of company reports means there are hopes for further advances as well.

"It's very hard to be bearish here," Linda Duessel, at Federated Investors Management, told Bloomberg tv. "We could have really good earnings surprises to the upside" as more profit reports roll in, she said.

- Chinese growth - Beijing contributed to the feel-good atmosphere, releasing data that said the world's second biggest economy expanded by 6.1 percent last year.

While that was the slowest pace in three decades and well below the 2018 level of 6.6 percent, it was in line with expectations and the government's target.

The six percent growth for October-December was the same as the previous quarter, and traders were cheered by a better-than-forecast rise in retail sales, industrial output and investment.

The slowdown in Chinese growth has been a major headache for investors for the past few years as the country's leaders struggle with the US trade war, slowing global demand and a worrying debt mountain.

- Key figures at 1645 GMT - London - FTSE 100: UP 0.9 percent at 7,674.56 points (close) Frankfurt - DAX 30: UP 0.7 percent at 13,526.13 (close) Paris - CAC 40: UP 1.0 percent at 6,100.72 (close) EURO STOXX 50: UP 0.9 percent at 3,808.26 New York - Dow: UP 0.1 percent at 29,332.25 Tokyo - Nikkei 225: UP 0.5 percent at 24,041.26 (close) Hong Kong - Hang Seng: UP 0.6 percent at 29,056.42 (close) Shanghai - Composite: UP 0.1 percent at 3,075.50 (close) Euro/dollar: DOWN at $1.1097 from $1.1137 at 2200 GMT Pound/dollar: DOWN at $1.3027 from $1.3080 Euro/pound: UP at 85.17 pence from 85.15 pence Dollar/yen: DOWN at 110.15 Yen from 110.16 yenBrent Crude: FLAT at $64.63 per barrelWest Texas Intermediate: DOWN less than 0.1 percent at $58.49

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