Futures Rise World Stocks Hit 6 Month High On Trade Deal Optimism
see this
>>6025592 pb Asian Stocks & Bond Yields Jump As Algo's Misread US-China Trade Headlines
(The Financial Times-who printed the story-is owned by the Nikkei-home of the Japanese stock Mkt so no coincidences involved with "misreading" anything)
US futures jumped and world stocks (Oil is pausing from a multi-day run-up)rallied to a six-month high following the latest dose of daily "trade deal optimism" when the FT reported what everyone already knows (but algos, who have a 10 millisecond memory, have forgotten), namely that the US and China have already resolved most of the easy issues standing in the way of a deal to end their long-running trade dispute but are still haggling over the difficult parts, namely how to implement and enforce the agreement.
That, coupled with some more reassuring economic data, helped S&P futures jump 14 points, fast approaching their Sept all time highs, pushed Germany’s 10-year bond yield back above zero percent, hit the dollar as the euro strengthened for the first time in seven sessions as oil neared the key $70 per barrel mark — a multi-month high — on supply concerns.
“We’re being told that we’re 90 percent of the way there which is obviously encouraging but the final 10 percent — which apparently includes the enforcement mechanism and the removal of tariffs — could take some time to iron out,” said Craig Erlam, senior market analyst at Oanda in London. “Investors are happy to be patient here in the hope that the two sides get this right and put an end to a trade war that has clearly taken its toll on markets.”
And since algos quickly calculated that 10% is less than 90% and ignored the actual politics behind the calculus, they promptly activated buy programs and U.S. equity-index futures rose and the Stoxx Europe 600 index jumped, led by miners, as the latest batch of Service PMI data from Italy to Germany also helped ease some of the concern over the euro area’s growth outlook.
Europe's Stoxx 600 index rose almost 0.8% to their highest since August. German stocks rose 1 percent to its highest level since October, while in Paris, French stocks scaled a similar high.
Europe's strong session followed overnight gains in Asia where MSCI’s broadest index of Asia-Pacific shares outside Japan climbed to a seven-month peak, buoyed by stronger-than-expected Chinese services data as China's Caixin Services PMI printed stronly in March, at 54.4 vs. Exp. 52.3 (Prev. 51.1), the highest since January 2018.
Hopes for a deal to end the trade war between the world’s two largest economies were also prompted by fresh comments from White House economic adviser Larry Kudlow that Washington expects “to make more headway” in talks this week. To be sure, analysts were giddy at the prospect of an imminent deal:
“What we’re seeing is that markets have climbed a world of worry but there is progress on trade, a recession is unlikely, central banks have made nods to more dovish policy,” said Chris Bailey, European Strategist at Raymond James. “If you put that into the mix I’m not surprised risk assets have moved up.”
“We are going to get a deal done in China and the U.S.,” said Luke Hickmore, senior investment manager at Aberdeen Standard Investments. “That, with the stimulus China has put in place, and a slightly calmer tone in the U.K. as well, I think is stoking a market that’s wanted to run hotter than it has done for a while.”
Not only have they moved up, but the MSCI World index is now just shy of a bull market from its December lows.
Generally strong world stocks and hopes of a softer Brexit sparked a sell-off in safe-haven government bonds, pushing yields off recent lows. U.S. 10-year Treasury yields rose almost 4 basis points to 2.52%. Germany’s benchmark 10-year German Bund yield rose back above 0, printing at 0.005%. A week ago it hit a 2-1/2 year low at around minus 0.09 percent on concern about the weak economic growth backdrop.
As oil prices surge, the Fed will be hard pressed to explain why it is ignoring what is arguably the biggest cause of consumer anger aimed at higher prices and instead focusing solely on boosting stock rices.
Live Gold Price
(surprised this has not been dropped with the futures skyed last night)
$1292.60
1,292.60Bid
1,293.60Ask
High: 1,295.30
Low: 1,290.30
+0.50 +0.04
rest at link(s)
https://www.zerohedge.com/news/2019-04-03/futures-jump-world-stocks-hit-6-month-high-trade-deal-optimism
https://www.bloomberg.com/markets/stocks/futures
https://www.dailyfx.com/crude-oil
https://www.kitco.com/charts/livegold.html