Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

GLOBAL MARKETS-World stocks rise as Brexit deal adds to Asian cheer

Published 09/12/2017, 01:32 am
Updated 10/12/2017, 12:00 pm
© Reuters.  GLOBAL MARKETS-World stocks rise as Brexit deal adds to Asian cheer

© Reuters. GLOBAL MARKETS-World stocks rise as Brexit deal adds to Asian cheer

* Britain and EU strike deal, paving way for trade talks

* European stocks surge 0.8 pct, following Asian stocks higher

* Dollar gains as U.S. government shutdown avoided

* Graphic: World FX rates in 2017 http://tmsnrt.rs/2egbfVh (Adds U.S. nonfarm payroll data, updates prices)

By Abhinav Ramnarayan

LONDON, Dec 8 (Reuters) - World stocks rose as a breakthrough in Brexit negotiations added momentum to an upswing underpinned by strong economic news from China and Japan.

Britain and the European Union struck a deal on Friday to move on to talk about trade and a transition period after they agreed the outline of their divorce deal. across the continent surged on the news, and even Britain's FTSE 100 Index .FTSE , which tends to move inversely with sterling, was higher through the day despite an early rally for the British currency.

At one stage sterling gained half a percent to hit a six-month high of 86.9 pence against the euro, but this completely reversed as the session went on. EURGBP=D3

"I think we've seen a classic case of the rumour being bought and the fact sold, with sterling having rallied early last week in anticipation of a deal being close," said OANDA analyst Craig Erlam.

"We could see more upside in the pound in the coming months but as it was before, the road ahead is bumpy and that will be reflected in the currency markets."

The pan-European share index .STOXX rose 0.8 percent, pushing the MSCI world equity index .MIWD00000PUS , which tracks shares in 47 countries, up 0.2 percent.

European banking shares were amongst the biggest gainers after financial regulators reached a long-sought deal on Thursday to harmonise global banking rules, but said the rules would take effect in 2022, later than previous expectations for 2019. dollar had risen earlier in the session but retraced a touch after the release of U.S. payroll data.

Job growth in the world's biggest economy increased at a strong clip in November but wage growth was a touch lower than expected. the average hourly earnings were lower than expected, we saw a bit of downward pressure on yields. I think it is more important than the jobs number, as it is a leading indicator of inflation," said Mizuho strategist Antoine Bouvet.

The yield on 10-year U.S. Treasuries also dipped slightly before rising again on this mixed picture. US10YT=RR

"To put it in context, it is unlikely to ease concerns in the Fed that inflation dynamics are weak."

According to a Reuters survey of economists, the Labor Department's closely watched employment report is likely to show that nonfarm payrolls rose by 200,000 jobs last month after surging 261,000 in October report probably will have little impact on expectations that the Federal Reserve will raise interest rates at its Dec. 12-13 policy meeting, but it could help shape the debate on monetary policy next year.

Wall Street futures pointed towards a higher open for U.S. stocks. ESc1

Earlier on Friday, Asian shares rallied for a second session in a row as economic news from China and Japan beat all expectations.

Beijing reported exports surged 12.3 percent in November from a year earlier, more than double the forecast, while imports climbed almost 18 percent. ore and copper imports enjoyed a stellar rebound, which could help stem a recent pullback in commodity prices.

Japan's Nikkei .N225 led the way as the yen eased on the dollar, rising 1.1 percent on top of Thursday's 1.45 percent bounce to be almost back where it started the week.

Revised data showed Japan's economy growing twice as fast as first thought as business spending jumped. inched up to $1,247.40 XAU= , having this week breached its recent tight trading range to hit a four-month trough at $1,245.60.

Oil prices rose, helped by rising Chinese demand and as a threatened strike by oil workers in Nigeria led to short covering.

Brent futures LCOc1 were up 0.7 percent at $62.91 a barrel, having climbed 98 cents overnight. U.S. crude CLc1 was up 71 cents at $57.40. O/R

For Reuters Live Markets blog on European and UK stock markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets

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.