Global markets have swung this week as investors try to gauge the progress of trade talks between China and the United States (Daniel ROLAND)

London (AFP) – Stock markets advanced and the dollar diverged Friday, with traders awaiting the release of key US jobs data.

Oil prices steadied as OPEC sought to strike a deal among crude producers on output at a meeting in Vienna, home to the cartel’s headquarters. 

The pound meanwhile slid on profit-taking ahead of Thursday’s UK general election. 

Sterling has made solid gains recently with the Conservatives led by British Prime Minister Boris Johnson expected to win next week’s vote.

Johnson has promised to get Brexit over the line in the coming weeks should he and his party be re-elected. 

“We’re off to a decent start in Europe as traders await the ever-highly anticipated jobs report from the US,” said Craig Erlam, senior market analyst at Oanda trading group.

The official figures should provide a fresh snapshot of the world’s top economy and could help dictate Federal Reserve monetary policy and possibly US President Donald Trump’s trade moves, according to analysts.

Ahead of the release, optimism over the China-US trade talks kept equities generally buoyant, with investors betting the two would eventually sign a partial deal, though markets remained nervous as next week’s deadline for fresh tariffs draws closer.

Sentiment across trading floors has ebbed and flowed through the week as observers try to gauge the state of play in the long-running negotiations, with both sides making positive, then negative comments on the outlook.

China on Friday offered its latest olive branch, saying it would waiver tariffs on “some” imports of key US soybean and pork imports.

“It’s been rather a strange week for global equity markets,” said Michael Hewson, analyst at CMC Markets UK.

“Moving from an expectation that we could well see some movement on trade between the US and China in the next couple of weeks, to the prospect that any solution may well not happen until after the next (American) presidential election.

“As a result of these mixed signals investors appear to be taking a more cautious view as to what may happen next.”

Traders remain on edge just over a week until December 15 — the day on which the US is due to impose tariffs on more China goods.

– Key figures around 1130 GMT – 

London – FTSE 100: UP 0.8 percent at 7,191.48 points

Frankfurt – DAX 30: UP 0.2 percent at 13,081.41

Paris – CAC 40: UP 0.4 percent at 5,823.11

EURO STOXX 50: UP 0.4 percent at 3,662.72

Tokyo – Nikkei 225: UP 0.2 percent at 23,354.40 (close)

Hong Kong – Hang Seng: UP 1.1 percent at 26,498.37 (close)

Shanghai – Composite: UP 0.4 percent at 2,912.01 (close)

New York – Dow: UP 0.1 percent at 27,677.79 (close)

Euro/dollar: DOWN at $1.1096 from $1.1104 at 2200 GMT

Pound/dollar: DOWN at $1.3132 from $1.3157 

Euro/pound: UP at 84.50 pence from 84.40 pence

Dollar/yen: DOWN at 108.57 yen from 108.76 yen

Brent North Sea crude: UP 0.1 percent at $63.43 per barrel

West Texas Intermediate: DOWN 0.1 percent at $58.37 per barrel

burs-bcp/jh

Disclaimer: Validity of the above story is for 7 Days from original date of publishing. Source: AFP.