Markets in risk-on mood amid hopes of US-China trade deal – business live | Business
(Source: theguardian.com)

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(Original link: theguardian.com)

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Rolling coverage of the latest economic and financial news
Introduction: Mnuchin says trade talks going well Reuters: US drops key demand to get deal Coming up: Goldman Sachs financial results LIVE Updated
A US cargo ship berthing at a port in Qingdao in China’s eastern Shandong province earlier this month. Photograph: STR/AFP/Getty Images Graeme Wearden
Mon 15 Apr 2019 10.02 BST First published on Mon 15 Apr 2019 07.57 BST
Share on Facebook Share on Twitter Share via Email Key events Show 10.02am BST 10:02 Global markets hit six-month high 8.33am BST 08:33 European banks shares hit six-month high 8.07am BST 08:07 Reuters: US drops demands for industrial subsidies 7.49am BST 07:49 Introduction: Mnuchin fuels optimism over China trade talks Live feed Show 10.02am BST 10:02
Global markets hit six-month high Boom! World stock markets have hit a new six-month high this morning .
Hopes of a resolution in the US-China trade war have sent MSCI’s gauge of global stocks up 0.5% to its highest levels since early October.
MSCI World stock market index Photograph: Refinitiv
That follows solid gains on Friday, and the rally in Japan today (plus gains in Italy and Spain this morning).
Kit Juckes of Societe Generale points to better-than-expected eurozone manufacturing data released late last week, and a surprise jump in Chinese exports.
He says:
Better Chinese export data on Friday were followed by a rare upside surprise from Eurozone industrial production, and up went global equities, Bund yields and the euro.
SCOFIELD!® (@Scofield_Fx) Riskier assets benefitted from better-than-expected Chinese trade data and improved sentiment over US-China trade talks. #markets
April 15, 2019 Facebook Twitter 9.47am BST 09:47
Yesterday, Donald Trump tore his eyes away from the Masters long enough to launch a fresh blast at the US central bank.
Using his favourite club (Twitter, of course), the president claimed that the US stock market would be much higher if the Federal Reserve has listened to him last year.
Rather than unwinding its stimulus programme by selling bonds, Trump argues, the Fed should have been buying MORE.
Donald J. Trump (@realDonaldTrump) If the Fed had done its job properly, which it has not, the Stock Market would have been up 5000 to 10,000 additional points, and GDP would have been well over 4% instead of 3%...with almost no inflation. Quantitative tightening was a killer, should have done the exact opposite!
April 14, 2019 Trump’s claim that America needs more quantitative easing is rather controversial -- and hardly matches his claim that the economy is doing well on his watch. Perhaps he’s getting his excuses in early, in case growth stalls badly this year.
But what about the points claim? Well, the Dow ended last week at 26,412 points - around 500 points shy of last October’s all-time high, and up 10% this year. Hardly a shabby performance.
Also, the biggest drag on the markets has been concerns over the global economy -- thanks in large part to Trump’s trade dispute with China.
As Paul Donovan of UBS puts it:
Over 40% of the Dow Jones industrial average is tech and industrial companies. These sectors suffer from the increasing burden of US trade taxes (which are effectively a tax on equities).
Facebook Twitter 9.24am BST 09:24
Gold has hit a one-week low this morning, as traders lose interest in safe-haven assets.
Bullion is down 0.3% to $12.86 per...