Markets on front foot as trade hopes return

Global markets mostly rose yesterday on renewed hopes for China-US trade talks after a report said a deal could be finalised by the end of next week.

The story came a day after Donald Trump had dampened prospects for an agreement by suggesting he would be happy to wait until after the 2020 presidential election before signing off on one.

Bloomberg News reported that US negotiators expected a deal to be completed before a new round of US tariffs on China is due to hit on December 15.

In foreign exchange activity, the pound held around its highest levels against the euro since May 2017 after fresh polls indicated Prime Minister Boris Johnson’s Conservatives would win a majority at next week’s general election.

In commodity markets, world oil prices firmed, one day after surging on reports that Opec and other major producers were ready to announce fresh output cuts.

Faced with slowing global economic growth and abundant reserves putting pressure on oil prices, Opec and its partners could seek to deepen output cuts when they meet in Vienna yesterday and today.

The cuts of 1.2 million barrels per day from October 2018 levels were originally fixed in December last year and were already extended at Opec’s last meeting in July.

Some observers expected the cuts to remain in place possibly until the end of 2020.