Global Stock Market Hits New Milestones Tuesday

LONDON, U.K. – Tuesday marks a highly optimistic trading day for the global stock market as it hit more record highs, some of the highest gains recorded after almost two years.

Following the fresh optimism regarding the long-standing trade negotiations between the US and China, most of the global market is seeing all-time highs. Recent updates about the two countries possibly ending the ongoing trade war, which has affected the stock market for months, has increased the sentiments of market players from all over the globe that a trade agreement will be reached before 2019 ends.

According to the commerce ministry of China, officials from both the US and China government conversed early on Tuesday. The vice-premier of China, Liu He, and the US trade representative Robert Lighthizer along with Steven Mnuchin, the US Treasury Secretary, talked trade with the hopes of reaching an agreement for phase one of the US-China trade deal.

The recent optimism on trade talks, along with the strong debut of the Chinese e-commerce behemoth Alibaba in Hong Kong, helped hike the stock markets all over Asia. Compared to the issue price for Alibaba shares, their price during their opening in Hong Kong raised up to 7% more. The listing of the Alibaba shares in the country was seen as a vote of confidence in Hong Kong after it has been hit by months of ongoing political unrest and protests.

Although the European stock market started Tuesday trading session marginally lower, the European STOXX 600 stayed within the striking range of its four-year highs.

The 49-country main world share index of MSCI edged a bit higher, tracking a modest 0.1% increase. Despite the moderate rise, MSCI is already touching its highest level after nearly two years, noting that it was below the 1% off all-time highs early in 2018.

In the US market, stock futures were a bit firmer with the recent optimism regarding the trade talks between the US and China, also serving as one of the drivers in the growth of the global market Tuesday. The headlines about the recent phone call from two of the biggest economies of the world pumped up the global market.

The hustle and bustle of massive acquisition activities have also helped power the market into all-time highs, with Charles Schwab Corp going to buy the TD Ameritrade Holding Corp, a US discount brokerage and LVMH in France offering to purchase the Tiffany & Co. US jeweler.

On the other hand, the stock market also awaits on what is going to happen on December 15, the expected schedule for the new tariff on Chinese goods that Washington wanted to impose.