Global stocks edged higher and bonds slipped following remarks from both China and the U.S. that progress was being made in trade talks. The dollar held steady hours before Friday’s report on the American job market.
The Stoxx Europe 600 Index drifted upward on gains in oil producers and miners. Asian trading volumes were muted, with China and Hong Kong shut for a holiday. Japan’s Topix closed at a one-month high, while Australian stocks dropped. Futures on the S&P 500 Index jumped to session highs after China reported President Xi Jinping said substantial progress had been made on the text for a trade deal. China stock futures also rose. Treasuries fell, with the yield on 10-year notes reaching a two-week high, and most euro-zone bonds slipped. The euro was little changed.
Xi is pushing for a rapid conclusion to the negotiations with the U.S., while President Donald Trump on Thursday talked up prospects for a “monumental” agreement that may still be some weeks away. The improved tone in the talks has helped drive the recent rally in equities, with the MSCI All Country World Index touching a six-month high this week. For some, that’s left them vulnerable to disappointment.
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