Asian markets finished higher after Chairman Jerome Powell reiterated that Federal Reserve would be patient about raising interest rates, Japan’s Nikkei 225 index gained 0.7%, Hong Kong’s Hang Seng rose 0.1%, the Shanghai Composite index also advanced 0.1%, Australian stocks eased by 0.3%, slipping for the first time in five sessions despite encouraging retail trade data. US Treasury Secretary Steven Mnuchin told reporters that Chinese Vice Premier Liu would most likely visit the US later this month for higher-level trade negotiations. Moreover, Mnuchin’s comments seem to have bolstered hopes of a breakthrough trade deal.
European stock indices started the session mixed, DAX is trading 0.10% higher at 10,927 while CAC40 in Paris advances 0.15% at 4812 and FTSE in London advances 0.18% at 6974. UK manufacturing and industrial production figures are due at 0930 GMT, along with the trade balance and gross domestic product for November.
On the Lookout: Australian retail sales expanded by 0.4% in November to be 2.8% above the level of a year ago while the annual figure is distorted lower by unfavourable base effects (sales jumped 1.2% last November followed by a sharp 0.5% decline in December).
Economic data is limited to December inflation figures out of the U.S that will provide some direction for USD.
Next week, data on consumer confidence and housing finance will be in focus locally on the economic front. Across the region, China international trade figures will receive attention on Monday considering its tensions with the US.