Global shares edge higher as Aussie dollar rebounds

Reuters reported on Wednesday that the two sides were drafting language for six memorandums of understanding on proposed Chinese reforms, progress that had helped lift investor sentiment.

Chinese vice-premier Liu He will meet with US President Donald Trump at the White House on Friday, the White House said.

“Given that enough headway seems to have been made to warrant a meeting between Trump and the Chinese negotiator today, it appears more likely that the US will not raise the levies, which should help high-beta currencies and equities push higher,” said Konstantinos Anthis, head of research at ADSS.

However, US data showed its economic outlook was growing cloudy. The US commerce department said on Thursday that domestic orders for non-defence capital goods excluding aircraft unexpectedly fell 0.7% in December.

Aussie rebound 

The Australian dollar recovered after falling more than 1% on Thursday, when Reuters reported the Chinese port of Dalian had banned imports of Australian coal indefinitely.

China’s foreign ministry said on Friday that coal imports continue, but customs had stepped up inspections for environment and safety checks on foreign cargoes.

Reserve Bank of Australia (RBA) governor Philip Lowe cautioned against seeing restrictions as being directed at Australia, and Prime Minister Scott Morrison said the ban does not indicate a souring relationship between the countries.

Separate comments by Lowe that a rate increase may be appropriate next year also helped boost the Aussie dollar. It was last up 0.35% at $0.71120.

Elsewhere, the euro was 0.1% higher at $1.1346 , nearing a two-week high. German business morale fell for the sixth time in a row, to its lowest in more than four years, a survey showed.

European Central Bank (ECB) policy makers asked for swift preparations to give banks more long-term loans, minutes of its last meeting showed on Thursday.

The dollar index, which tracks the currency against six others, was down 0.1% at 96.549.

Italian government bond yields crept up on Friday, reflecting caution among investors before a Fitch ratings review.

US crude oil rose 0.3% to $57.14 a barrel. Brent crude was up nearly 0.2% at $67.18. Spot gold was trading up about 0.2% at $1,325.83 an ounce.

Reuters