Stock Markets Rebound As Trade Optimism Returns

Stock markets mostly rebounded Friday on renewed hopes that China and the United States would strike a mini trade deal, traders said

London, (UrduPoint / Pakistan Point News - 22nd Nov, 2019 ):Stock markets mostly rebounded Friday on renewed hopes that China and the United States would strike a mini trade deal, traders said.

"Markets appear to have found some sense of positivity in a week that has seen its fair share of pessimism over the growing feeling the trade talks may have ground to a standstill", said Joshua Mahony, senior market analyst at IG trading group.

Frankfurt and Paris clung onto positive territory as data showed the eurozone's economy has almost stalled after successive months of manufacturing decline.

IHS Markit said its composite eurozone purchasing managers' index (PMI) fell to 50.3 points in November, down from a revised 50.6 points last month.

The pound slid -- strongly boosting the London stock market that is dominated by multinationals earning in dollars -- as separate IHS Markit PMI figures revealed that UK manufacturing and services output contracted at the fastest rates in 40 months.

Christine Lagarde on Friday urged European countries to "innovate and invest" more to support growth at a time of global uncertainty, in her first major policy speech as president of the European Central Bank.

The eurozone economy is expected to grow just 1.1 percent this year, she said, "much lower than previously forecast" as "trade tensions and geopolitical uncertainties" take their toll.

A sense of optimism has however returned to trading floors after a report said China's point man on the US tariffs talks had offered to host a meeting to help push through their crucial mini pact.

At the same time, investors were nervous that the deal could collapse at any minute after US lawmakers passed a bill supporting Hong Kong rights, causing anger in Beijing.

Chinese President Xi Jinping on Friday said that China wants to reach an initial trade deal with the United States but is "not afraid" to fight back when necessary and will enact economic reforms at its own pace.

The world's two biggest economies have been locked in a bruising trade conflict for more than a year, hitting each other with volleys of tariffs on hundreds of billions of dollars worth of goods.

Yet expectations that the economic superpowers would be able to sign off on the agreement soon has helped fan a rally across world markets, despite losses for much of this week.

Hopes were given a fresh lift Thursday after the Wall Street Journal said top negotiator Vice Premier Liu He had invited his US counterparts for further discussions to haul the deal over the line.

Elsewhere Friday, oil prices slipped after enjoying a strong rally Thursday, with investors keeping close tabs on developments in the trade talks.

- Key figures around 1115 GMT - London - FTSE 100: UP 1.0 percent at 7,310.35 points Frankfurt - DAX 30: UP 0.1 percent at 13,144.75 Paris - CAC 40: UP 0.2 percent at 5,891.72 EURO STOXX 50: UP 0.2 percent at 3,685.48 Tokyo - Nikkei 225: UP 0.3 percent at 23,122.88 (close) Hong Kong - Hang Seng: UP 0.5 percent at 26,595.08 (close) Shanghai - Composite: DOWN 0.6 percent at 2,885.29 (close) New York - Dow: DOWN 0.2 percent at 27,766.29 (close) Euro/dollar: DOWN at $1.1056 from $1.1059 at 2100 GMT Pound/dollar: DOWN at $1.2877 from $1.2914 Euro/pound: UP at 85.85 pence from 85.64 pence Dollar/yen: DOWN at 108.50 yen from 108.63 yenBrent North Sea crude: DOWN 0.3 percent at $63.80 per barrelWest Texas Intermediate: DOWN 0.4 percent at $58.35 per barrel