· Stocks rose on Tuesday amid news that U.S. lawmakers had secured a tentative deal on border security funding. Improved prospects for a U.S.-China trade deal also boosted equities.
The Dow Jones Industrial Average rose 372.65 points to close at 25,425.76, led by Caterpillar and 3M. The S&P 500 climbed 1.3percent to 2,744.73 as materials, consumer discretionary and financials outperformed. The S&P 500 also closed above its 200-day moving average — a closely watched level by traders — for the first time since Dec. 3. The Nasdaq Composite advanced 1.46 percent to 7,414.62.
· Asian stocks pulled ahead and safe-haven government bonds came under further pressure on Wednesday on optimism the United States and China might be able to hammer out a deal to resolve their nearly year-long trade dispute.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.2 percent.
South Korea’s KOSPI gained 0.5 percent and Japan’s Nikkei climbed 1 percent.
Asia took its cue from Wall Street, where the Dow and Nasdaq each rallied about 1.5 percent overnight on optimism over U.S.-China trade negotiations and a tentative U.S. congressional spending deal to avert another partial government shutdown.
· “We are currently seeing negative sentiment which had built up over trade concerns and U.S. fiscal issues being unwound,” said Soichiro Monji, senior economist at Daiwa SB Investments in Tokyo.
“For risk assets to move purely on optimism, the U.S.-China trade row will need to see some kind of a closure in March. A more permanent solution to avoid a U.S. government shutdown is also necessary. It has to be remembered that we are not there yet.”
Reference: CNBC
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