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- Oil approached its highest levels for the year amid a positive outlook for global markets before US-China trade talks kick off today in Washington.
- Asian stocks rallied to seven month highs following comments from White House economic adviser Larry Kudlow that the US hopes "to make more headway" in trade talks.
- European stocks shrugged off weak manufacturing data and rose, while US futures point to gains.
Global markets are basking in optimism on the outcome of US-China trade talks kicking off in Washington today, with the improved sentiment also boosting energy prices.
Brent crude approached its highest levels this year and sits just outside the $70 a barrel bracket as tighter supply continues to boost prices. Traders are also positive that the easing trade war concerns will improve China's energy demand, similarly aiding prices.
That positivity has been boosted by strong data out of China and a belief that a resolution to the lengthy US-China trade war may be in sight. Asian stocks rallied to seven month highs following comments from White House economic adviser Larry Kudlow that the US hopes "to make more headway" in trade talks, Reuters reported.
Meanwhile, MSCI's broadest index of Asia-Pacific shares outside Japan rose to highs not seen since last August on improved sentiment and closed up 0.8%, according to Reuters.
"Whilst traders are starting to look for more solid evidence that a trade deal between the two powers is achievable within the coming months, there is also a sense that investors are looking for any positive rhetoric to sustain the current rally," according to Jasper Lawler, head of research at London Capital Group.
Here's the roundup:
- Brent crude is trading at $69.75, up 0.6%, as of 8.45 a.m in London (3.45 a.m ET). WTI continued its rally and is up 0.3%.
- The Shanghai Composite closed up 1.2% amid a broad improvement in Asian stocks with South Korea's KOSPI and Japan's Nikkei up 1.2% and 1% respectively.
- The Euro Stoxx 50 is up 0.9% as European equities follow Asian markets higher with the DAX up 1.2% and France's CAC40 trading 0.8% higher.
- US futures are following suit with the Nasdaq up 0.7% while the S&P 500 and Dow are both up 0.5%.
Get the latest Oil WTI price here.