Global Market Report for December 17 by Morningstar Australia

The Australian stock market is projected to have a strong opening following positive trends from overseas. The SPI200 futures contract showed a gain of 24.0 points, or 0.35%, at 6,873.0 at 7am Sydney time, indicating a rise for the S&P/ASX200. The Australian equity market experienced the second-best trading day this year, fueled by optimism surrounding potential resolutions to the US-China trade conflict and Brexit. On Monday, the S&P/ASX200 index surged by 110 points, or 1.63%, to 6,849.7, while the broader All Ordinaries index closed up 107.7 points, or 1.57%, at 6,952.3 points.

The US equity market showed positive momentum, with the Dow Jones Industrial Average climbing by 0.36%, the S&P 500 by 0.73%, and the Nasdaq Composite by 0.91%. The UK’s FTSE 100 soared by 2.3%, and the STOXX 600 index in Europe recorded a 1.4% increase, reaching a new high. The Australian dollar was at US68.89 cents.

In Asia, Chinese stocks demonstrated a six-week high as the market responded positively to a preliminary trade agreement between China and the US and encouraging economic data from China. The CSI300 index advanced by 0.5%, while the Shanghai Composite Index rose by 0.6%, closing at its highest point since November 8th. On the other hand, Hong Kong’s Hang Seng index experienced a decline as MSCI’s Asia ex-Japan stock index gained 0.22%, and Japan’s Nikkei index dropped by 0.29%.

European markets also witnessed record highs, driven by optimism over the US-China trade agreement and the victory of the British Conservative Party in the elections. The London FTSE 100 surged by 2.3%, with shares of British American Tobacco, Glencore, and BHP among those rising by 3% to 5%. The STOXX 600 index achieved a record high with a 1.4% increase. German DAX underperformed amid shrinking private sector activity. Trade-sensitive miners rallied as Washington revealed a US-China trade deal boosting US exports to China in the coming years.

Wall Street experienced record highs due to easing trade tensions between the US and China, and positive economic findings from China. The S&P 500 index is on track for its highest annual percentage gain in six years, climbing over 27% this year. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite reached record highs. Shares of UnitedHealth Group and Amgen Inc rose following recommendations from Goldman Sachs, while Boeing Co shares faced a decline. The S&P 500 is up more than 27% this year and is on course for its highest annual percentage gain in six years.