Wall Street's benchmarks march higher on trade-talk hopes
|- The Dow Jones Industrial Average added 150.66 points, or 0.6%, to 26,496.67.
- The Nasdaq Composite Index added 47.04 points, or 0.6%, to finish at 7,950.78.
- The S&P 500 index put on 0.6%, or 18.73 points, to 2,938.13.
On a risk-on session, following positive momentum in trade talks between the US and China as well as signs of a Brexit breakthrough, US benchmarks were on the front foot. The news that trade talks had started off well, and in earnest, while Trump was also due to meet with Chinese Vice Premier Lui He on Friday. “Big day of negotiations with China. They want to make a deal, but do I? I will meet with the Vice Premier tomorrow at The White House,” said Trump, stocks rallied.
The Dow Jones Industrial Average added 150.66 points, or 0.6%, to 26,496.67 while the S&P 500 index put on 0.6%, or 18.73 points, to 2,938.13. The Nasdaq Composite Index added 47.04 points, or 0.6%, to finish at 7,950.78.
US data taking a breather
On the US economic calendar, the headline inflation surprised to the downside in September at 0.0% m/m, keeping the annual rate unchanged at 1.7% y/y. "Core inflation was a key drag to the downside at 0.1%, finally losing some steam in September following three consecutive 0.3% increases in Jun-Aug," analysts at TD Securities explained.
Brexit risks dimmed
As for Brexit headlines, Irish PM Leo Varadkar says a Brexit deal is possible following a three hour meeting with UK PM Boris Johnson. "This is a stark change in tone from earlier comments from the EU. A press statement released says their discussions concentrated on the challenges of customs and consent but gave little away as to exactly what concessions had been made regarding Northern Ireland in order to get to this position. Varadkar says the talks were at a ‘very sensitive stage’ but were ‘very positive and promising’. Negotiations between the EU and the UK will continue tomorrow between the UK Brexit Secretary Stephen Barclay and the top EU Brexit negotiator Michele Barnier," analysts at ANZ explained.
DJIA levels
The DJIA rallied to the 21 and 50-DMAs converging in the mid 26000s on a risk-on session. Bears will otherwise be en-route for a test of the psychological 26000 level again. A break to the upside and through the mentioned DMAs accumulating around the mid-point of the 26000s in line with the Sep lows-resistance line in the mid-26000's will open prospects back to the Sep highs through 27200. On the downside, the 200-DMA is located at 25940.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.