World markets hit 2019 high amid trade war optimism - as it happened
Rolling coverage of the latest economic and financial news, as investors cling to hopes that Beijing and Washington are making progress in their trade talks
- Latest: World markets hit highest level since December 2018
- Introduction: Trade optimism is building
- More US-China talks due this week
- Brent crude near $67 per barrel
- Chinese stocks surged this morning
1.33pm GMT
Time for a recap.
World stock markets have hit their highest level of 2019, as optimism builds that the US and China can calm their trade wars.
On Friday, China and the U.S. announced plans to resume trade negotiations in Washington, fueling hopes that both countries were edging toward a deal.
"We feel we have made headway on very, very important and difficult issues," U.S. Trade Representative Robert Lighthizer said in a meeting with Chinese President Xi Jinping.
1.22pm GMT
Brexit uncertainty, and fears of job losses, are eating into UK household confidence.
British households grew more downbeat about their finances this month, according to data firm Markit.
12.47pm GMT
Heads-up, travellers -- staff at Luton Airport have voted to hold a week-long strike.
GH London provides ground-handling services to Wizz Air at Luton Airport.
Unite regional officer Jeff Hodge said: "Unite has been calling for meaningful talks with GH London since the beginning of 2018.
12.25pm GMT
Germany's central bank has given investors a dose of realism, warning that Europe's largest economy will continue to struggle for the next few months.
"All this suggests that the underlying pace of the economy should remain subdued at least in the first half of the year. "But there are no signs that the slowdown is becoming an outright downturn."
11.54am GMT
Shoe retailer Footasylum has been a particularly dire stock market performer of late.
Having floated at 164p in November 2017, shares had slumped to just 30p last week - a serious loss for anyone who joined the IPO.
Related: Footasylum shares soar as JD Sports buys stake
11.19am GMT
Take note, Donald Trump -- Europe says it will hit back if America decides its car industry is a national security threat.
EU Commission says EU would react swiftly if US applied tariffs to EU car imports
11.04am GMT
It's notable that markets are rallying despite weak US economic data last week -- poor factory output, and the biggest drop in retail sales in nine years.
Kit Juckes of Societe Generale explains why:
Markets are starting the week with a broad grin on their collective face. China's strong lending data and China/US trade optimism outweigh any concerns about what President Trump may do regarding Auto imports.
The US has released two major economic indicators that send alarming signals about the US economy but for markets, policy (monetary and trade) outweighs such old-fashioned concerns as the economic cycle.
10.20am GMT
Despite the weak open in Europe, global stock markets have hit their highest level in two and a half months.
With China up 3% today, and Japan's Nikkei up 1.8% to its highest level this year, the MSCI's All-Country World Index has gained 0.3% to its highest level since 3rd December last year.
APAC Closing Prices:#ASX 6089.8 +0.39%#NIKKEI 21281.85 +1.82%#HSI 28347.01 +1.60%#HSHARES 11149.02 +1.94%#CSI300 3445.74 +3.21%
Trade talks between the US and China appear to be making good progress. Both sides issued positive remarks about the progress of the negotiations, including President Trump's admission that he may agree to an extension to the March the 1st deadline, maintaining the current level of tariffs on Chinese imported goods beyond that date.
The news appears to have calmed the nerves of investors and as fears over an escalation in the trade conflict recede, so does the value of the Dollar.
9.48am GMT
The US-China trade war optimism is being undermined by fears that Donald Trump could impose new tariffs on Europe's car industry.
The US Department of Commerce has just filed a report, outlining whether the EU auto industry is a national security threat.
"These tariffs, if applied, could move the development and implementation of new automotive technologies offshore, leaving America behind.
"Not a single company in the domestic auto industry requested this investigation."
9.07am GMT
The rise in the oil price is bad news for airline stocks, most of which are down this morning.
International Airlines Group (British Airways' parent company) is leading the FTSE 100 fallers, down 2%. Budget airline Wizz Air has lost 1.4%, with easyJet dipping by 1%.
Related: Flybmi tells customers to seek refunds from credit card companies
8.54am GMT
In the City, shares in household goods giant Reckitt Benckiser jumped 3% to the top of the FTSE 100 in early trading, after reporting decent results.
8.18am GMT
China's stock market has surged today, partly due to trade optimism.
"Positive signs in the U.S.-China trade talks helped boost sentiment across markets."
Roaring day for Chinese stocks, Shenzhen A-Share index +3.7%, Shanghai Composite +2.7%. Now up more than 13% and 10% for the year respectively. pic.twitter.com/i1Et0FlhIN
8.03am GMT
Today's rally means Brent crude has risen by 25% since the start of the year, when it was trading around $53 per barrel.
That reflects hopes that the US-China trade war will calm down, which would be good for global growth (and thus energy demand).
7.46am GMT
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
Hopes of a breakthrough in the US-China trade talks are ripping through the markets again, at the start of a new week.
Important meetings and calls on China Trade Deal, and more, today with my staff. Big progress being made on soooo many different fronts! Our Country has such fantastic potential for future growth and greatness on an even higher level!
Risk appetite is on at the start of the week with currencies and equities buoyed by the signs of progress in the US-China trade talks. Trump's decision to declare a state of emergency didn't seem to bother investors too much as they've grown accustomed to the US President's radical character and markets' focus lies squarely on any further progress on the trade front this week.,,,
Regarding trade, the most recent news out of the talks between the US and China suggests that the two sides have come closer to each other and an extension to the March 1st deadline for increased tariffs appears likely.
Global stocks start week in Risk-On mood. Asia equities rally to the highest level since October on trade talk and stimulus wagers. Signs mount major CenBanks turning reflationary. BUT trading be thin for Presidents' Day holiday in the US. Oil rises to 2019 high. Bitcoin at 3.7k. pic.twitter.com/Q8qh0JmIT8
Continue reading...