U.S. equity indexes opened higher on Wednesday on a report that the U.S. and China are making progress on phase one of a trade deal.
The Dow Jones Industrial Average gained 125.51 points to 27,628.32 while the S&P 500 rose 10.23 points to 3,103.43 and the Nasdaq Composite Index advanced 32.69 points to 8,553.33.
Bloomberg reported that despite Donald Trump’s comments in London on Tuesday, Beijing and Washington were working on a phase one trade deal that would be finished before another round of tariffs against Chinese goods are scheduled for Dec. 15. One of the matters discussed in trade talks was which tariffs would be rolled back.
Sources informed Bloomberg that neither Trump signing a bill in support of Hong Kong protesters nor legislation designed to sanction China over human rights violations against Uighurs in Xinjiang would scuttle the deal.
On Tuesday, Trump had insisted there was no timetable to completing the trade deal.
“If the U.S. follows through with the threat of tariffs on Dec. 15, that is definitely a re-escalation, and China will retaliate,” said Lu Xiang, an expert in bilateral ties at the state-run Chinese Academy of Social Sciences in Beijing. He added Trump is “still weighing the conditions for a deal, but for his political interests, he needs a deal — no matter if it is signed in December, January or February.”
Private employers added 67,000 jobs in November, the lowest level since May, the ADP National Employment Report said. Economists predicted a gain of 140,000 jobs.
Larry Page and Sergey Brin stepped down as CEO and president, respectively, from Alphabet Inc. (GOOGL), the parent of Google, but will stay on the board. Google’s CEO Sundar Pichai take over as Alphabet’s CEO.
Overnight in Asia, markets all finished lower. The Hang Seng fell 1.25% while Japan’s Nikkei-225 dropped 1.05% and China’s Shanghai Composite slipped 0.21%
European markets were higher with the FTSE 100 up 0.04% while Germany’s DAX rose 0.98% and France’s CAC 40 jumped 1.12%.
Crude oil futures gained 3.01% to $57.79 per barrel and Brent crude rose 2.88% at $62.57. Gold futures slipped 0.05%.
The euro was up 0.17% to $1.11 while the pound sterling rose 0.72% at $1.309.