Global shares edge higher amidst trade optimism and improved factory activity in China

Global shares edge higher amidst trade optimism and improved factory activity in China

  • Global shares gain on Monday following improved factory activity in China in November.
  • MIWD00000PUS gained 0.1%, ESc1 0.31%, STXEc1 0.19%, FTSE 100 0.43%, CSI 0.68%.
  • U.S - China trade tensions continue to be in focus for the global financial markets.

Amidst the positive figures for China’s factory activity in November and speculations that the United States of America and China may sign a phase 1 deal in the near future, the global financial markets noted slight gains on Monday.

Earlier this morning, global shares were seen trading narrowly below the record high printed in January 2018. MSCI’s gauge that covers the widest range of global shares, MIWD00000PUS, was reported trading 0.1% higher as of 05:50 GMT.

Thanksgiving Saw A Decline In U.S Stock Futures On Friday

Owing to Thanksgiving, the U.S stock futures ESc1 saw a considerable decline on Friday. As of Monday, however, much of the loss has been regained as the index noted a gain of 0.31% for the day so far. Pan-European STXEc1 also presented modest gains of 0.19% earlier on Monday. The European bluechip FTSE 100 index started the day with a celebration as well. The index opened at 7,346 to start the week. With a matter of a little over an hour, the index was reported to have registered a daily high of 7,398.

FTSE futures FFIc1, on the other hand, has hiked by 0.13% on Monday so far. The German DAX futures FDXc1 is no different in this regard and turned green with 0.21% gain. The gains in global shares, as per the sources, have also penetrated into the Asian markets. Japan’s Nikkei .N225 is up 1.01% while MSCI’s Asia – Pacific shares (excluding Japan), .MIAPJ0000PUS has jumped 0.24% for the day.

China’s Bluechip CSI 300 Gained 0.68% On Monday

China’s blue-chip CSI 300 index was reported to have dropped to a three-month low on Friday. As of Monday, the index has regained the losses and was last seen trading 0.68% higher earlier on Monday.

According to the analysts, much of the rise in global shares can be attributed to the upbeat economic data for China’s factory activity in November. The official figure from the National Bureau of Statistics as well as a private-sector survey from Caixin has hinted at better than expected manufacturing PMIs for China last month. The optimism has also been construed by the investors as a better prospect of an imminent phase 1 deal between the two largest economies of the world, despite the complication arising from President’s Trump signature on the prodemocracy bill in favor of the protests in Hong Kong.

Analysts from across the globe have also opinionated that the damage from the recent affairs can be contained and a trade deal is still possible between the United States and China.

By Michael Harris
Specialising in economics by academia, with a passion for financial trading, Michael Harris has been a regular contributor to Invezz. His passion has given him first hand experience of trading, while his writing means he understands the market forces and wider regulation.

Investing is speculative. When investing your capital is at risk. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence. This website is free for you to use but we may receive commission from the companies we feature on this site. Click here for more information.