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Stock indices across the globe renewed their run higher yesterday, as more “good” news feeds into the narrative that the US and China are making their way to a trade deal. The S&P500 touched fresh record highs, and that’s setting up the ASX200 for a solid open this morning. It was an otherwise light data-data day for global markets. The Hang Seng outperformed as investors digested trade-news, as well as the administrative region’s election results. And in the day ahead now, attention locally and abroad will turn to some central bank speak, with US Fed Chair Jerome Powell and RBA Governor Philip Lowe delivering speeches.
The latest cause for optimism regarding the trade-war in global markets was news that the Chinese will be moving to tighten up its intellectual property laws, effectively at the behest of the United States. Intellectual property theft has featured as a prominent sticking-point throughout trade-talks. The sectors of the US stock market highly exposes to trade-talks, and the issue of intellectual property itself, outperformed last night. Tech stocks, in particular, have topped the table, with the NASDAQ climbing roughly 1.2 cent, to trade at its own all-time highs, and in a day of remarkably high activity trade.
In terms of the outperformer across global stock indices yesterday, the Hang Seng managed to lead the pack. Underpinned by greater trade-optimism on the one hand, Hong Kong stocks possessed an extra catalyst for a rally in Monday’s trade, after the weekend’s elections in the administrative council passed without a major escalation in street violence.