Prison Planet.com » Global Markets Rebound On Renewed Trade Hopes, Oil Slides For Record 12th Day

Zero Hedge
November 13, 2018

After Monday’s vicious Veteran’s Day selloff, which took place with the cash bond market closed, world markets have regained their footing as European stocks and S&P 500 futures are higher, recovering some of the previous session’s losses on renewed hopes (how many times have we heard this) for progress in the U.S.-China trade dispute following a report that China’s vice premier Liu He will meet with Steven Mnuchin in Washington, even as Asian shares dropped overall, led by Japan’s 2.1% slide as tech stocks were hit on iPhone demand fears.

Europe’s Stoxx 600 Index rose for the first time in three days, with telecoms leading the way after Vodafone announced better than expected quarterly results, although the index was off its earlier highs. Contracts on the Dow, Nasdaq and S&P 500 were all firmer, and after sliding as low as 2,720 on Monday, S&P futures were 0.6% higher.

Focusing on Europe, today is the day the Italians will resubmit their budget after the EC requested a new fiscal plan. No material changes are expected. According to Deutsche Bank, the commission will continue to adopt a tough stance on Italy. It seems inevitable they will recommend an Excessive Deficit Procedure (EDP) in the next few weeks. So for now any grand bargain is far away.

Earlier, the Shanghai Comp. (+0.9%) and Hang Seng (+0.6%) both opened lower although gradually recovered amid hopes for an improvement in US-China trade relations amid reports that US Treasury Secretary Mnuchin and Chinese Vice Premier Liu He spoke by phone on Friday about a deal that could ease trade tensions and with some US officials reportedly expecting China to make a trade offer ahead of the Trump-Xi meeting.

  • A d v e r t i s e m e n t

Other Asian indexes fared less well, and slid with Apple suppliers under pressure after the iPhone maker fell on signs of a deteriorating sales outlook….

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