NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

GLOBAL MARKETS-Asian shares scale new 7-month highs; tight supply lifts oil

Published 03/04/2019, 05:03 pm
Updated 03/04/2019, 05:10 pm
© Reuters.  GLOBAL MARKETS-Asian shares scale new 7-month highs; tight supply lifts oil
EUR/USD
-
GBP/USD
-
USD/JPY
-
UK100
-
XAU/USD
-
US500
-
DJI
-
AXJO
-
JP225
-
HK50
-
DE30
-
DX
-
GC
-
LCO
-
UK100
-
CL
-
IXIC
-
US2YT=X
-
US10YT=X
-
MIAPJ0000PUS
-
CSI300
-
MIWD00000PUS
-
DXY
-

* MSCI Asia Ex-Japan up 0.8 pct

* European futures show shares expected to rise

* Oil touches highest level since November, nears $70 per barrel

* Sterling ticks up as May seeks further Brexit delay

* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Andrew Galbraith

SHANGHAI, April 3 (Reuters) - Asian shares rose to fresh seven-month highs on Wednesday as investors cheered signs of progress in U.S.-China trade talks and brisk economic data, while oil approached the key $70 per barrel mark.

Shares in Europe were seen following Asia's lead, with London's FTSE futures FFIc1 adding 0.1 percent and Frankfurt's DAX futures FDXc1 jumping 0.7 percent.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was up 0.8 percent on Wednesday afternoon in Asia, after earlier touching its highest level since late August.

The index has risen more than 3 percent since Thursday following reports of progress in trade talks between the United States and China, as well as reassuring factory activity data from China and the U.S.

The run of gains for stock markets worldwide has also pushed MSCI's key gauge of global equities .MIWD00000PUS to a six-month high. The global index was up more than 0.2 percent on Wednesday.

Hopes for a deal to end the trade war between the world's two largest economies were fanned by fresh comments from White House economic adviser Larry Kudlow that Washington expects "to make more headway" in talks this week. so, analysts struggled to point to a clear catalyst for the extended rally in equities.

"I think there's a tendency for markets at times to just want to be positive unless you hit them repeatedly, and not just with bad news, but with new bad news," said Rob Carnell, chief economist and head of Asia-Pacific research at ING in Singapore.

"There's been an awful lot of bad news priced in. So perhaps the absence of new negatives are enough to allow for a small sense of positivity to creep in," he said.

Australian shares .AXJO were up 0.7 percent and Japan's Nikkei stock index .N225 added 1 percent. Chinese blue-chips .CSI300 were 0.5 percent higher after a tentative start, while Hong Kong's Hang Seng index .HSI added 0.9 percent.

On Tuesday, the Dow Jones Industrial Average .DJI fell 0.3 percent to 26,179.13 points, the S&P 500 .SPX was flat and the Nasdaq Composite .IXIC added 0.25 percent to 7,848.69.

"After such a strong rise it is no surprise that the risk rally stalled a little," said Greg McKenna, strategist at McKenna Macro, in a morning note to clients.

But after a brief consolidation in risk sentiment, U.S. Treasury yields were once again ticking higher.

Benchmark 10-year Treasury notes US10YT=RR yielded 2.5044 percent, up from a U.S. close of 2.479 percent on Tuesday, and the two-year yield US2YT=RR touched 2.3247 percent compared with a U.S. close of 2.308 percent.

Oil prices also stood near multi-month highs amid concerns about supply, with Brent crude LCOc1 rising as much as 0.72 percent to $69.87 per barrel, its highest since November and near the psychologically important level of $70 per barrel.

It was last up 0.52 percent at $69.73. U.S. West Texas Intermediate (WTI) crude CLc1 rose 0.37 percent to $62.81 per barrel.

News that the United States is considering more sanctions against Iran, the fourth-largest producer in the Organization of the Petroleum Exporting Countries (OPEC), and the halting of production at a crude terminal in Venezuela threatened to squeeze supply and pushed oil prices up on Tuesday. currency markets, the pound was about 0.1 percent higher at $1.3139 GBP= , having recovered its footing after British Prime Minister Theresa May said she would seek another delay to Brexit to work out an European Union divorce deal with opposition Labour leader Jeremy Corbyn. dollar strengthened 0.06 percent against the yen to 111.38 JPY= and the euro EUR= added 0.18 percent to buy $1.1222.

The dollar index .DXY , which tracks the greenback against a basket of six major rivals, eased 0.19 percent to 97.176.

Cryptocurrency bitcoin BTC= , which surged 18.7 percent on Tuesday following a major order by an anonymous buyer, extended its gains by another 1.2 percent to $4,958.98.

Spot gold XAU= gained 0.05 percent to trade at $1,293.38 per ounce. GOL/

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Squeezing higher

https://tmsnrt.rs/2CSw2bx

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.