Wall Street opens higher after Biden talks with Chinese Xi


Washington, February 11 (AP) Wall Street opens up Thursday, after President Joe Biden had his first meeting with Chinese leader Xi Jinping since taking office. The S&P 500 rose 0.3% in the first few minutes of trading to 3,921, heading for a new high.

The Bumble Dating App starts trading later today. Rival Match group hit an all-time high on Wednesday. Stocks rose after a government inflation report suggested the US economy could absorb more stimulus without overheating. The yield on the 10-year Treasury bill held steady at 1.15% after hitting 1.20% earlier this week. Oil prices were lower.

Global stock indexes were mostly up on Thursday after President Joe Biden had his first conversation with Chinese leader Xi Jinping since taking office, although there was no indication of a major change in the US trade policy.

Many markets in Asia were closed for the Lunar New Year and other holidays.

Benchmarks in Paris, Frankfurt and Hong Kong rose, while London stagnated.

US futures rose slightly.

With much of Asia celebrating the traditional start of the Year of the Beef, there is little news that could boost the market for the rest of the week from the region.

During their phone conversation, Biden and Xi appeared to have adopted a conciliatory tone, Oanda’s Jeffrey Halley said in a comment.

U.S. officials have signaled that Washington will keep in place technology export restrictions and tariffs imposed by President Donald Trump’s previous administration.

But investors and businesses in the region are hopeful that a more balanced approach to relations between the two largest economies by the Biden administration could help minimize future shocks to trade and investment.

“The new normal remains largely intact, although the financial markets have long picked it up,” said Halley.

“The initial contact however seems to have been civilized, and for that the rest of the world can be grateful.”

The German DAX rose 0.1% to 13,949.43 while the CAC 40 in Paris gained 0.3% to 5,688.80.

The UK FTSE 100 held steady at 6,527.11. The S&P 500 futures gained 0.2% to 3,909.10 while the Dow Industrials contract also gained 0.2% to 31,302.00.

Markets were boosted by surprisingly good corporate earnings reports, indications that a recent spike in new coronavirus cases is abating, advances in vaccine distribution and signs that Washington lawmakers are ‘are about to give the economy another financial boost.

A US government report released on Wednesday showed inflation remained under control last month, reassuring investors that the economy can absorb more stimulus without overheating.

The Hong Kong Hang Seng gained 0.5% to 30,173.57 and the Sensex in India rose 0.2% to 51,382.86.

In Australia, the S & P / ASX 200 slipped 0.1% to 6,850.10. Markets were closed in Tokyo, Taiwan, Seoul and Shanghai.

On Wednesday, the S&P 500 slipped less than 0.1% to 3,909.88 after fluctuating between a 0.5% gain and a loss of 0.7%. Nearly 60% of companies in the benchmark rose, although a decline in technology stocks and companies that provide services and products to consumers limited those gains.

The Dow Jones rose 0.2% to 31,437.80. The Nasdaq lost 0.3% to 13,972.53. The Russell 2000 Small Business Index fell 0.7% to 2,282.44.

The Labor Department said Wednesday that consumer prices in the United States rose 0.3 percent in January, driven by a surge in energy. It was the biggest monthly increase since July, but inflation over the past year has remained modest at 1.4%. Core inflation, which excludes volatile food and energy costs, is also up 1.4%, with underlying prices unchanged in January.

The yield on the 10-year Treasury bill climbed to 1.15%. It hit 1.20% earlier this week.

Investors are watching inflation metrics more closely as Congressional Democrats prepare to inject $ 1.9 trillion in stimulus into the economy. American businesses are starting to reopen and millions of Americans are now vaccinated, which means there could be an increase in economic activity that could push prices up. So far, much of the extra money funneled into savings appears to be lodged in financial markets.

In other trading on Thursday, benchmark US crude oil fell 39 cents to $ 58.29 per barrel in electronic trading on the New York Mercantile Exchange. It gained 32 cents to $ 58.68 on Wednesday. Brent crude, the international standard for pricing, fell 39 cents to $ 61.08 a barrel.

The US dollar rose from 104.59 yen to 104.66 Japanese yen. The euro slipped to $ 1.2119 from $ 1.2120. (AP)

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Warning :- This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: PTI


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