Close  

China-US trade hopes lift stocks as oil prices surge

/ 08:06 AM January 10, 2019
Wall Street stocks end their worst year since 2008

AP Photo

NEW YORK, United States – Global stocks pushed higher Wednesday on renewed optimism over talks to resolve the China-US trade war, while oil prices surged after Saudi Arabia confirmed it was on track to trim crude exports.

Europe’s major stock markets followed Asian exchanges higher, with Frankfurt and Paris both ending day 0.8 percent higher. London rose 0.7 percent.

ADVERTISEMENT

Wall Street also had a solid day, with major indices rising for a fourth straight session.

Gains in the US moderated somewhat in the final 40 minutes of trading after talks to end the US government shutdown between President Donald Trump and congressional Democratic leaders broke down. But the S&P 500 still finished 0.4 percent higher.

FEATURED STORIES

“Stocks were extremely oversold,” said Bill Lynch of Hinsdale Associates. “There’s optimism today that the market can continue to be strong.”

Brent crude oil pushed above $61 per barrel, with OPEC cutting output and concerns easing over weak demand growth.

The dollar, meanwhile, sank to its lowest level against the euro since October as Federal Reserve meeting minutes, and statements from Fed officials, made clear the US central bank was in no hurry to hike interest rates again soon.

The dollar also declined against the British pound, despite lingering uncertainty over Brexit.

On Wednesday, in a setback to Theresa May, British lawmakers voted to force the prime minister to quickly set out an alternative plan for Brexit if she loses a crucial vote on her EU withdrawal deal next week.

After taking a battering in December and suffering a shaky start to 2019, confidence is slowly returning to equity trading floors.

The gains follow calming comments last week from Federal Reserve Chair Jerome Powell, followed by apparent progress in the US-China talks.

ADVERTISEMENT

A member of the US delegation, Under Secretary for Trade and Foreign Agricultural Affairs Ted McKinney, told reporters that the talks “went just fine.”

The Wall Street Journal said the two sides were moving in the right direction, with China ready to buy more US goods and services, while further talks at cabinet level were being lined up next week.

Oil surges back from lows

Oil prices — which have tumbled in recent months partly because of worries about the impact on demand of the China-US trade war — rose sharply after Saudi officials said they were committed to implementing the latest OPEC agreement to boost prices.

Saudi Energy Minister Khalid al-Falih said the kingdom, the world’s top crude supplier, would cut its exports to 7.2 million barrels a day in January, down from 8.0 million bpd in November.

“We are serious about restoring balance to the market,” Falih told a press conference in Riyadh.

“We are concerned about volatility in the oil market,” he said. “We have seen peaks and drops in prices (that are) completely unjustified by the fundamentals.”

Brent has climbed some 20 percent compared with just two weeks ago, prior to an oil production cut by OPEC and non-cartel producers from January 1. /cbb

Read Next
LATEST STORIES
MOST READ
Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: China, News, oil price, stocks, Trade, US
For feedback, complaints, or inquiries, contact us.
newsinfo

FDA warns public vs 5 unregistered food products

January 21, 2019 08:15 AM

newsinfo

Massive power outage in Panama ahead of papal visit

January 21, 2019 07:51 AM

newsinfo

Slower ‘Amang’ takes path toward Leyte

January 21, 2019 07:36 AM

newsinfo

75% BOL plebiscite turnout seen

January 21, 2019 07:25 AM

sports

Pacquiao makes time for son

January 21, 2019

business

Strike looms at Clark airport

January 21, 2019

sports

Ageless warrior

January 21, 2019




© Copyright 1997-2019 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.