LONDON, Dec 20 — Stock prices rose today, with sentiment on both sides of the Atlantic helped by optimism that a trade deal between the US and China is taking shape, dealers said.
Concerns that pen had not yet been put to paper on the pact were soothed by US Treasury Secretary Steven Mnuchin, who said a technical review was taking place and it would be signed in early January.
“China reaffirmed its pledge to purchase more than US$40 billion (RM165.7 billion) in US agriculture products, US Treasury Secretary Steven Mnuchin said he was confident of a signed US/China ‘phase one’ deal in January,” the Charles Schwab brokerage house said.
Wall Street extended yesterday’s record-breaking run at the opening bell, with all key European indices also well in positive territory.
The British pound and London equities continued firm after Britain’s freshly-elected parliament approved Prime Minister Boris Johnson’s divorce deal with the EU in a first vote.
The outcome in the lower House of Commons will help Johnson on his way towards meeting his campaign promise to “get Brexit done” on January 31.
The result provides markets with “some degree of certainty and confidence”, said analyst Joshua Mahony at trading firm IG.
Traders meanwhile set aside news that the British economy strengthened by more than expected in the third quarter of 2019 — despite looming Brexit.
On the corporate front, Anglo-Dutch oil giant Royal Dutch Shell warned it would take an impairment charge of between US$1.7 billion and US$2.3 billion in the fourth quarter — and cut its capital expenditure guidance.
The gloomy news sent both Shell’s ‘A’ and ‘B’shares sliding in London.
“This ... appears to show that (Shell) management underestimated how much weaker oil prices would be in the latter part of this year, as well as underestimating future demand for oil,” said CMC Markets analyst Michael Hewson.
Asian equities traded mixed with investors awaiting fresh catalysts to drive business, though with the China-US trade deal agreed and Christmas approaching many are in wind-down mode.
Key figures around 1440 GMT
London — FTSE 100: UP 0.2 per cent at 7,586.91 points
Frankfurt — DAX 30: UP 0.7 per cent at 13,299.53
Paris — CAC 40: UP 0.7 per cent at 6,014.43
EURO STOXX 50: UP 0.8 per cent at 3,769.88
New York — Dow: UP 0.4 per cent at 28,477.89
Tokyo — Nikkei 225: DOWN 0.2 per cent at 23,816.63 (close)
Hong Kong — Hang Seng: UP 0.3 per cent at 27,871.35 (close)
Shanghai — Composite: DOWN 0.4 per cent at 3,004.94 (close)
Pound/dollar: UP at US$1.3040 from US$1.3009 at 2200 GMT
Euro/pound: DOWN at 84.94 pence from 85.49 pence
Euro/dollar: DOWN at US$1.1085 from US$1.1122
Dollar/yen: UP at 109.38 yen from 109.37 yen
Brent North Sea crude: DOWN 0.1 per cent at US$66.51 per barrel
West Texas Intermediate: DOWN 0.1 per cent at US$62.13 — AFP
