World Stocks Rally On China-US Trade; Pound Slides On UK Turmoil 12 Dec 2018

Global stock markets rallied Wednesday on upbeat China-US trade news, while the pound hit yet another 20-month low as British Prime Minister Theresa May faces a no-confidence vote.

London, (UrduPoint / Pakistan Point News - 12th Dec, 2018 ) :Global stock markets rallied Wednesday on upbeat China-US trade news, while the pound hit yet another 20-month low as British Prime Minister Theresa May faces a no-confidence vote.

Oil prices jumped one Dollar as volatility continued to grip world crude markets.

A flurry of positive developments in the tariffs stand-off between the world's top economies provided early Christmas cheer on trading floors, fuelling hopes an all-out trade war can be avoided.

In afternoon deals, Frankfurt fizzed 0.9 percent higher, London won 1.1 percent and Paris added 1.6 percent.

The positivity spilled over from Asia, where Tokyo ended 2.2 percent higher and Shanghai rose 0.3 percent, while Hong Kong jumped 1.6 percent.

"The equity markets are taking encouragement from recent reports of a potential truce in the US-China trade dispute," noted VTB Capital analyst Neil MacKinnon.

Canada on Tuesday released on bail Meng Wanzhou, chief financial officer (CFO) at Chinese telecoms giant Huawei, whose arrest last week sparked fury in Beijing and worries about a truce agreed at the G20 by Donald Trump and Xi Jinping this month.

Providing some extra support to the news of Meng's release was an interview in which Trump said he could intervene in the case if it helps seal a trade pact with China, adding: "Whatever's good for this country, I would do." China added to market-friendly noise by saying it had agreed to cut tariffs on US autos to 15 percent from 40 percent -- wiping out a levy imposed earlier this year in response to US measures.

Investors welcomed the headlines but sounded a note of caution.

"Newsflow regarding developments in the US-China trade dispute has been notoriously erratic and positive news can quickly give way to negative news," added MacKinnon.

- May no-confidence vote - The British pound meanwhile ducked as low as $1.

2478 -- a level last seen in April 2017 -- in a torrid week for the Brexit-hit Currency.

The latest low came as the head of a Conservative Party committee in charge of organising leadership challenges announced that May would Wednesday face a no-confidence vote over her Brexit negotiations.

The weak pound boosts London-listed multinationals whose earnings abroad are converted back into sterling, handing a fillip to the FTSE 100 shares index.

The news came after May had delayed Tuesday's parliamentary vote on her EU divorce agreement to avert a crushing defeat.

In midday deals, sterling clawed back ground to stand at $1.2534, up from $1.2487 late on Tuesday.

"So far sterling has played the waiting game in regards to the impending vote of no-confidence in Theresa May," noted Spreadex analyst Connor Campbell.

"If the prime minister comes out the other side with her job intact, then it takes one of the many uncertainties that have swirled around UK politics for the last few months off the table.

"If she loses, on the other hand, then well, the pound's likely going to have a very unpleasant run-in to Christmas." - Key figures around 1200 GMT - London - FTSE 100: UP 1.1 percent at 6,883.57 points Frankfurt - DAX 30: UP 0.9 percent at 10,878.71 Paris - CAC 40: UP 1.6 percent at 4,880.64 EURO STOXX 50: UP 1.2 percent at 3,092.94 Tokyo - Nikkei 225: UP 2.2 percent at 21,602.75 (close) Hong Kong - Hang Seng: UP 1.6 percent at 26,186.71 (close) Shanghai - Composite: UP 0.3 percent at 2,602.15 (close) New York - Dow Jones: DOWN 0.2 percent at 24,370.24 (close) Pound/dollar: UP at $1.2534 from $1.2487 at 2200 GMT Euro/dollar: UP at $1.1332 from $1.1317 Dollar/yen: UP at 113.39 Yen from 113.38 yenOil - Brent Crude: UP 99 cents at $61.19 per barrelOil - West Texas Intermediate UP 95 cents at $52.60