World equity markets rose on Friday as optimism around trade and benign U. S. inflation boosted investor sentiment, while crude oil retreated on news of weaker U. S. factory activity.
NEW YORK (Reuters) – World equity markets rose on Friday as optimism around trade and benign U. S. inflation boosted investor sentiment, while crude oil retreated on news of weaker U. S. factory activity.
On Thursday, White House economic adviser Larry Kudlow called progress in the trade negotiations between the United States and China “fantastic” and said the countries were “heading toward a remarkable, historic deal.”
Additionally, Bloomberg reported that a summit between U. S. President Donald Trump and his Chinese counterpart Xi Jinping to sign a final deal could happen as soon as mid-March.
“They may be moving toward a trade deal, and the market is anticipating that and getting ahead of it,” said Chad Morganlander, senior portfolio manager at Washington Crossing Advisors in Florham Park, New Jersey.
“That doesn’t mean it will gin up the global economy as the market is hoping for,” he added.
A slew of surveys has highlighted how much manufacturers are suffering worldwide, particularly those exposed to China’s slowdown, and added weight to expectations that policy tightening from central banks is pretty much over.
