Pre-market Update: Global Stocks Rise on Trade Hopes

President Trump signaled positive developments were on the way in trade negotiations with China.  Investors pounced on the news and drove global stocks higher today.  Asia, in particular, benefited from a surge higher as investors piled in.

Investor enthusiasm has continued into the European session and into US stock futures.  The one bit of bad news weighing on US stocks is that Apple spooked investors during its after-hours earnings release by stating that it will no longer provide unit sales information.  This has led analysts to assume that iPhone sales are set to stagnate.  Apple’s shares are currently down 5.75% in pre-market trading and will likely be a drag to the rest of the market.

Asian stocks jumped higher on the trade news.  A couple of the notable moves across Asia today:

  • Japan’s NIKKEI 500 Index jumped 2.83%;
  • The Shanghai Composite Index climbed 2.70%;
  • Hong Kong’s Hang Seng Index is rose 4.21%;
  • South Korea’s KOSPI Index moved 3.53% higher;
  • India’s SENSEX gained 1.68%;

European stock markets are up in early trading.  A look at some of Europe’s top indices shows:

  • London’s FTSE Index gained 0.83%;
  • The German DAX Index jumped 1.45%;
  • The FTSE Italia All Shares Index rose 1.61%;
  • The French CAC 40 Index is up 1.29% at the open.

European stock markets will continue to focus on issues within their own markets such as the Brexit negotiations and the Turkish Lira Crisis.  Additionally, European investors are keeping a close eye on developments in Italy as investors have become fearful of potential anti-EU measures by the new government.

US Futures Are Also Trading Higher in Pre-Market Action

The U.S. stock market is moving up in pre-market trading as investors digest Trump’s trade moves.   Specifically, the NASDAQ and the S&P 500 futures are up 0.21% and 0.82%, respectively.

Finally, investors will continue to take their cues from the news cycle heading.  Indeed, any new developments in the Trump legal morass or global trade disputes could see it drive markets in either direction.

See more of our analysis here.

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Al Basoglu

I am a financial services professional with over a decade of experience in various roles. I've lived and worked abroad in 5 different countries while pursuing personal and professional challenges. My interests include markets, history and different cultures. I tend to weave all of my interest into my analysis and articles.