US Stocks gain on hopes for U.S.-China trade deal

The US stocks finished session higher on Friday, 22 November 2019, amid optimism that the U.S. and China may edging closer to a trade deal after positive comments on a trade deal by President Donald Trump and his Chinese counterpart Xi Jinping.market gains were, however, capped after the Federal Communications Commission voted on Friday to label Chinese telecom giants Huawei and ZTE as a national security risk, a move that bars them from accessing a government subsidy program. At closing bell, the Dow Jones Industrial Average advanced 109.32 points, or 0.39%, to 27,875.62, while the S&P 500 index added 6.75 points, or 0.22%, to 3,110.29. The Nasdaq Composite grew 13.67 points, or 0.16%, to 8,519.88.

Market participants commenced trading with firm footing after President Donald Trump said that a deal between the world's largest economies is potentially very close after Chinese President Xi Jinping said Beijing is working to try not to have a trade war, but will nevertheless fight back if necessary.

President Xi had injected some measure of hope into a market that has grown more uncertain about a partial U.S.-China trade deal materializing. We want to work for a Phase 1 agreement on the basis of mutual respect and equality, he was quoted as saying, during a forum in Beijing attended by a delegation of foreigners. China's chief trade negotiator Liu He remained optimistic about striking a trade deal and invited his U.S. counterparts for more talks. On the U.S. side, President Donald Trump said there was a good chance to make a deal, and later suggested he needed to balance the needs of the U.S.-China relationship.

ECONOMIC NEWS: The IHS Markit said its U.S. flash manufacturing sector purchasing managers index rose to 52.2 in November from 51.3 in October. Meanwhile the U.S. flash services sector purchasing managers index in November rose to 51.6 from 50.6. Any reading above 50 indicates improving conditions. The University of Michigan reported that its consumer-sentiment index for November came in at 96.8, versus 95.7 in the prior month.

Powered by Capital Market - Live News