Rally In Chinese Markets Advances World Shares
World shares gained on Tuesday following a rally in Chinese markets. Hopes were high following China's upbeat home price data and the positive developments in the China-United States trade talks.
DAX of Germany gained 0.6 percent to 12,096.93. France's CAC 40 closed higher by 0.3 percent at 5,524.92. the FTSE 100 from Britain surged 0.3 percent, reaching 7,458.74. Wall Street is also expecting for gains with the future contract for the Dow with an increase of up to 0.4percent at 26, 476.00 the S%amp:P 500 advanced 0.4 percent to 2,919.70.
In the Asian Region, the Shanghai Composite index rose 2.4 percent to 3,253.60 while the Hang Seng index in Hong Kong gained 1.1 percent to 30,129.87. The Nikkei 225 index rose 0.2 percent reaching 22,221.66. Kospi from South Korea advanced 0.2 percent to 2,246.63 while the S& P/ASX 200 in Australia added 0.4 percent to 6,277.40.
Sensex from India gained 1 percent to 39,281.69. Taiwan and South Asia's shares followed the rising trend. On Wednesday, investors will keep an eye for key economic growth data from China.
According to reports, China's house prices increased in March heightening hopes that a slowdown in all-important property sector may be abating. The government said reported that home prices in 70 major cities advanced on average.
The optimism that the trade friction between China and the United States comes to an end is increasing because of the new positive developments in the negotiations. The director of the United States president's National Economic Council, Larry Kudlow, said during an interview with the press that negotiations over complaints that China has unfair technology policies were going "very well" and it is making good progress.
Mr. Kudlow said that the negotiations are not there yet because they still have some open issues. He however, said that currency reforms look very good, for example, there's been progress on enforcement. He also thinks that the key here is steady conversations. According to Stephen Innes of SPI Asset Management, the air of optimism remains thick as improving risk sentiment on the back of U.S.-China trade talks has Asia markets accelerating higher today led by substantial gains on the Shanghai Composite Index
In terms of the energy sector, the price of oil dropped for the year. United States crude oil benchmark dropped 10 cents to $63.30 per barrel before falling 49 cents as it settles at $63.40 on Monday. The international standard, Brent crude, fell 19 cents to $ 70.98.