NEW YORK – Global stocks rose Wednesday, buoyed by optimism that United States and Chinese negotiators would be able to reach at least a partial trade deal in time to avert another round of tariffs.
President Donald Trump said at a cabinet session Tuesday that he was willing to push back a March 1 deadline for a trade agreement if ongoing talks between the US and China appeared to be moving along.
Stocks around the world rose, with the Stoxx Europe 600 up 0.3 percent and major indexes in Shanghai, Japan and Hong Kong up more than 1 percent apiece. That followed a rally in the US, where the Dow Jones Industrial Average surged nearly 400 points Tuesday.
But with details for what a trade agreement would look like still in flux, some analysts have warned against taking too much comfort in initial reports about the negotiations.
“A deal will certainly help jump-start China, the US and the broader global economy,” said Yousef Abbasi, director of US institutional equities and global macro strategist at INTL FCStone, in an email. But a number of key questions still remain unresolved, Abassi said, including how far China is willing to go on issues like intellectual property protection.
“Longer term, it’s very hard to have a view on the potential for a deal without more information,” he said.
A string of corporate earnings results helped buoy European stocks on Wednesday.
Shares of United Kingdom-based Tullow Oil rose 0.9 percent after the oil-and-gas company reported swinging to a profit in 2018.
Home furnishings retailer Dunelm Group jumped 4 percent after reporting profit and revenue rose for the six month period through the end of December, while Heineken shares rallied 4.5 percent after the brewing company delivered better-than-expected earnings.
In the US, investors are expected to get quarterly results from companies including Cisco Systems, Yelp and Marathon Oil after the closing bell.
Futures pointed to the S&P 500 and Dow Jones Industrial Average futures rising 0.3 percent apiece. Changes in futures do not necessarily reflect moves after the opening bell.
Bond yields edged higher as rallying stocks cooled demand for the safety of sovereign debt.
The yield on the benchmark 10-year US Treasury note recently traded at 2.691 percent, compared with 2.685 percent Tuesday. Yields rise as bond prices fall.