Wall Street's main indexes rebounded on Wednesday, thanks to a survey on business conditions in the Federal Reserve's key districts which showed that economic activity in non-financial service sectors was either steady or improving. The Dow Jones Industrial Average had closed 237.45 points higher at 26,355.47, while the S&P 500 gained 1.1% to finish at 2,937.78. The Nasdaq Composite advanced 1.3% to 7,976.88.
Lawmakers in Britain's lower house of Parliament voted to approve legislation designed to prevent Prime Minister Boris Johnson's government from taking the country out of the European Union without a deal.
Chinese officials announced that they've agreed with the United States to hold another round of trade talks in Washington next month. China's Commerce Ministry on Thursday announced that the country's Vice Premier and chief trade negotiator Liu He has spoken with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin, and that both sides agreed to meet in Washington in October. The two sides will continue talking before then, according to the Commerce Ministry. A spokesperson for Lighthizer's department confirmed the two sides talked and agreed to hold talks in the US capital "in the coming weeks."
In China, activity in the services sector expanded at the fastest pace in three months in August, providing a boost to the world's second-largest economy, which has been struggling to reverse a prolonged slump in its manufacturing sector.
The reports, subsequently confirmed, that Hong Kong leader Carrie Lam would formally withdraw a controversial extradition bill that sparked months of protests in the financial hub.
Energy stocks gained, after oil prices jumped more than 4% overnight, boosted by positive economic data from China. However, oil prices dipped slightly in early Asian trade, after an industry report revealed a surprise buildup in US crude stockpile last week. Shares of Australia's biggest oil and gas explorer Woodside Petroleum rose as much as 3%, while its peer Oil Search advanced 2.8%. Whitehaven Coal fell 9%, as shares of the country's biggest independent coal miner traded ex-dividend.
Financial stocks climbed, with top lenders Westpac Banking Corp and Australia and New Zealand Banking Group rising 1.3% and 1.4%, respectively.
Materials stocks were softer, with BHP Group, the world's biggest miner and Australia's largest firm by market value, fell after it traded ex-dividend.
ECONOMIC NEWS: Australia Trade Surplus Declines In July--Australia's trade surplus declined to A$7.26 billion in July from June's record A$7.97 billion as exports logged only a marginal growth, data from the Australian Bureau of Statistics showed Thursday. Due to weak iron ore exports, overall shipments of goods and services advanced only 1% to A$42.53 billion. Non-monetary gold surged 66%, while non-rural goods fell 3% and rural goods slid 1%. Net exports of goods under merchanting plunged 33%, while services exports rose A$38 million. At the same time, imports of goods and services climbed 3%. Imports of intermediate and other merchandise goods grew 5%, and that of consumption goods rose 4% and non-monetary gold by 29%. Meanwhile, capital goods fell 1% and imports of services dropped A$30 million.
CURRENCY NEWS: The Australian dollar rose against greenback on Thursday, as demand for high yielding currency underpinned after a series of positive headlines out of Britain and Hong Kong, and robust economic data from China, and better than expected July trade surplus, just shy of $7.3 billion and the increased trade optimism, provided a dose of optimism to investors worried about global growth. The Australian dollar changed hands at $0.6821 after rising from the $0.676 handle in the previous session.
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