Markets rise on trade-talks progress

London — European and Asian shares hovered near four-month highs on Tuesday as investors took heart from some progress in China-US trade talks, while the yen dribbled lower as Japan’s central bank said it could ease policy again.

World markets were struggling a bit for direction after a slow but buoyant start to the week and with a new round of China-US trade talks, this time in Washington, being held later.

Stocks traders were largely happy to keep their powder dry.

Europe’s main bourses spent most of their first hour dithering before eventually heading lower after a subdued Asian session had seen most markets there barely get out of first gear.

Currency dealers had at least a bit more to keep them busy.

The yen had slipped to ¥110.70 per dollar after Japan’s central bank governor had said it could redeploy stimulus if the yen’s relative strength this year hurt the economy and inflation prospects.

The euro was just above $1.13 after more talk of ultra-cheap ECB bank loans, while Sweden’s krona dived to a two-year low against the dollar as inflation data came in weak just two months after a rise in interest rates.

“Stokkie [dollar vs Swedish krona] is off to the races,” said TD Securities’ head of global research, Richard Kelly.

“You had especially weak inflation and as you see [from the yen and euro] it comes against this backdrop of central banks becoming more dovish again,” although he also said that bond markets has seen far less reaction to the Swedish data.

Most other currencies were stuck in familiar ranges.

Sterling was flat at $1.2923, with the ongoing Brexit talks between Britain and the EU overpowering strong employment and wage data, while the Australian dollar held at $0.7112.

The precious metals market was more animated, with palladium surging to a record high of $1,471.0 per ounce as stricter emissions standards are seen increasing demand for the auto catalyst metal.

Gold held at about $1,323.66 per ounce after earlier rising to a near 10-month high of $1,327.64 too.

Oil prices were mixed, with Brent futures off 29 US cents at $66.21, although that was not far from Monday’s $66.83, which was the highest since mid-November. US crude futures added 21c to $55.8.