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Global stocks rally on trade deal optimism as pound falls again
NEW YORK, March 30, 2019 (BSS/AFP) – Global stocks rallied Friday on
optimism over US-China trade talks, while the pound fell further as Britain
veered closer to a potential “no deal” Brexit.
Bourses rose in the US and in major European and Asian centers, concluding
the first quarter with a flourish.
Friday’s session was bolstered by upbeat comments from Trump
administration officials following the latest round of trade negotiations in
Beijing.
US and Chinese negotiators are working to find a binding agreement to
address President Donald Trump’s complaints about years of unfair treatment
of US companies by China, which would allow a rollback of the tariffs hitting
businesses in both countries.
The White House reported “progress” in what it termed “candid and
constructive discussions,” saying that the next round of talks will be held
in the US capital on April 3.
Chinese state broadcaster CCTV said the latest round yielded “new
progress,” without elaborating.
The broad-based S&P 500 ended at 2,834.40, up 0.7 percent for the session
and 13.1 percent for the quarter, its best in almost a decade.
The first-quarter rally has been fed by optimism over the US-China trade
talks and by the Federal Reserve’s dovish shift on monetary policy.
In a closely-watched premiere on public markets, ride-hailing company Lyft
finished at $78.29, up 8.7 percent from its initial public offering price
after the IPO raised $2.3 billion.
– ‘What happens next’? –
Meanwhile, the pound slid further after British MPs rejected Prime
Minister Theresa May’s EU divorce deal for a third time, opening the way for
a long delay to Brexit — or a chaotic “no deal” withdrawal in two weeks.
Lawmakers in parliament’s lower House of Commons defied May’s plea to end
a political deadlock over Brexit, defeating her withdrawal agreement by 344
votes to 286.
“We thought it was going to be a lot closer,” Joshua Mahony told AFP on
the IG trading floor in London. “Everyone is now starting to wonder exactly
what happens next.”
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“No-one really wants to say it but we are in danger of sleepwalking into
an unintended no-deal scenario here, an outcome that looked highly unlikely
just a couple of weeks back, and this poses a major risk for the pound,” said
XTB analyst David Cheetham.
The EU Commission seemed to agree, saying after the vote that a no-deal
Brexit was now a “likely scenario”.
The EU has set a deadline of April 12 for a decision, with two likely
options: Britain leaves with no deal at all, or agrees a lengthy extension to
allow time for a new approach.
“Whenever you’ve tracked the pound it has always been reflecting the
market sentiment surrounding the possibility of a no-deal Brexit — and I
think today’s move really does reflect that,” Mahony said.
– Key figures around 2100 GMT –
New York – Dow: UP 0.8 percent at 25,928.68 (close)
New York – S&P 500: UP 0.7 percent at 2,834.40 (close)
New York – Nasdaq: UP 0.8 percent at 7,729.32 (close)
London – FTSE 100: UP 0.6 percent at 7,279.19 (close)
Frankfurt – DAX 30: UP 0.9 percent at 11,526.04 (close)
Paris – CAC 40: UP 1.0 percent at 5,350.53 (close)
EURO STOXX 50: UP 1.0 percent at 3,351.71 (close)
Tokyo – Nikkei 225: UP 0.8 percent at 21,205.81 (close)
Hong Kong – Hang Seng: UP 1.0 percent at 29,051.36 (close)
Shanghai – Composite: UP 3.2 percent at 3,090.76 (close)
Oil – Brent Crude: DOWN 1 cent at $67.82 per barrel
Oil – West Texas Intermediate: DOWN 11 cents at $59.30 per barrel
Pound/dollar: DOWN at $1.3023 from $1.3044 at 2100 GMT
Euro/pound: UP at 86.14 pence from 86.03 pence
Euro/dollar: DOWN at $1.1217 from $1.1221
Dollar/yen: UP at 110.82 yen from 110.63 yen
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