Market Update & Important Indicators:
U.S. stocks climbed intraday, with the Dow gaining more than 450 points, as remarks from Chinese President Xi Jinping soothed concerns about a trade war that have roiled markets in recent weeks. Nine of 11 sectors in the S&P 500 charged higher. Energy stocks in the index led the way, rising 4%, as the price of crude oil added 3.3% to $65.51 a barrel. Technology stocks also outperformed, climbing 2.8%, as Facebook Chief Executive Mar Zuckerberg testified before Congress about the social-media company's handling of personal user data. Facebook shares rose 4.9%. Only utilities and real estate shares, which are considered bond proxies because of the hefty dividends they pay, slumped in the S&P 500, each falling 0.6%. The broad index rose 1.7%, while the technology-focused Nasdaq Composite climbed 2.1%.The Dow Jones Industrial Average rose 429 points, or 1.8%, to 24451, after climbing as much as 532 points earlier in the session. The US gold price rose overnight, jumping 0.3% to 1339.10 US$/oz.
The Stoxx Europe 600 index closed up 0.8% at 378.42, having reached their highest in nearly four weeks at 378.48, tracking gains in U.S. stocks on optimism about easing tensions between the U.S. and China over trade. Mining stocks led the risers, along with oil stocks. Technology stocks rose before testimony in Congress by Facebook CEO Mark Zuckerberg. Germany's DAX ended up 1.1%, the U.K.'s FTSE 100 up 1%, and France's CAC 40 up 0.8%. Peripheral markets were up by less, with Spain's IBEX 35 ending up 0.2% and Italy's FTSE MIB up 0.5%.
In Asia-Pacific markets, stocks rose after Chinese President Xi pledged to significantly broaden market access this year. Speaking at the Boao Forum, an annual economic summit, Mr. Xi pledged Beijing's commitment to further economic liberalization, as well as promising greater intellectual property protection and increased access to China's financial and manufacturing sectors for foreign companies. While the Chinese president made no direct reference to U.S. President Donald Trump or China's simmering trade tensions with the U.S., his conciliatory tone was taken well by the market. In Asia, Hong Kong's Hang Seng Index rallied 1.7% as did Shanghai's composite index, with Chinese banks among the sharpest risers. The Shenzhen composite index was up 0.5%. Japan's Nikkei index rose 0.5%, with exporters boosted by the erosion of the yen's recent rally. South Korea's Kospi rose 0.3%.
Australian stocks and the dollar found solid support after Chinese President Xi Jinping pledged to broaden market access into China and helped ease some recent trade worries. Again recovering from early weakness, the S&P/ASX 200 outpaced most other bench marks .It closed up 0.8% to 5857, a more-than-two-week best. The advance was led by 1%-plus rebounds in major banks, as well as telecom and miners — the latter aided by start-of-week jumps in commodity prices.
The London Metal Exchange’s 3-month copper contract rose on Tuesday night, rising 1.7% at 6,945/t. The other base metals were mainly higher overnight. Lead prices rose 0.3% to 2,391/t, whilst zinc prices added 0.9% to 3,235/t. Nickel finished 2.0% higher at 13,652/t, continuing its upward trend was aluminium which rose 2.4% at 2,206/t. Bucking the trend was the tin price which shed 1.4% at 20,926/t.
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