Investors are optimistic a trade deal can be reached but are nervously awaiting details from China and the United States (Daniel ROLAND)

London (AFP) – Wall Street continued its record run higher on Tuesday as investors tracked developments in the China-US trade talks, while Chinese online retail titan Alibaba surged almost eight percent on its Hong Kong debut.

After closing Monday at record highs, Wall Street’s main indices inched higher Tuesday as Chinese and US officials continue to drip feed markets information about talks to resolve their trade war.

On Tuesday, Chinese Vice Premier Liu He spoke by phone to US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin, state media said.

The two sides “discussed solving issues regarding each other’s core concerns, reached consensus on properly resolving related issues, and agreed to maintain communication on remaining issues in consultations on the ‘phase one’ deal”, China’s official Xinhua news agency said, without providing more details.

The news came after Beijing said at the weekend it would hike penalties on violations of intellectual property rights and also look at lowering the threshold for criminal punishments of those who steal intellectual property.

The IP issue is a major sticking point for the United States in the discussions and agreement on it is seen as key to their success.

The comments helped sentiment, but failed to spark a new rally, especially as trading quiets ahead of the US Thanksgiving holiday on Thursday.

“Though quiet, the Dow Jones still managed to add 40 or so points -– enough to lift it back above 28,100 and to an effective all-time high,” said market analyst Connor Campbell at Spreadex.

“Traders remember only too well that in June the discussions were 90 percent complete before they fell apart, so it is understandable that stocks are only a little higher today,” said David Madden at CMC Markets UK.

Europe’s main stock markets finished narrowly mixed.

The pound fell back as Britain’s main opposition Labour party clawed back ground in the polls ahead of next month’s general election, as they attempt to unseat Prime Minister Boris Johnson’s Conservatives and unleash a programme of renationalisation.

– Alibaba stars on debut –

In Hong Kong, shares in Chinese e-commerce titan Alibaba surged 7.7 percent as it began trading for the first time following an $11 billion initial public offering, which is the city’s biggest since 2010.

It ended at HK$187.60, up 6.6 percent from its listing price.

Asia’s most valuable firm, which is already traded in New York, said the decision to list in Hong Kong was a vote of confidence in the city, which has been hit by months of violent protests and the trade war.

However, Asian markets struggled to extend advances from the day before despite Wall Street’s record-high closing.

Tokyo did manage to rise 0.4 percent as the trade optimism lifted the dollar against the yen, providing a boost to Japanese exporters, while Shanghai was flat.

– Key figures around 1630 GMT –

London – FTSE 100: UP less than 0.1 percent at 7,403.14 points (close)

Frankfurt – DAX 30: DOWN less than 0.1 percent at 13,236.42 (close)

Paris – CAC 40: UP less than 0.1 percent at 5,929.62 (close)

EURO STOXX 50:  UP less than 0.1 percent at 3,708.90

New York – Dow: UP 0.1 percent at 28,097.26

Tokyo – Nikkei 225: UP 0.4 percent at 23,373.32 (close)

Hong Kong – Hang Seng: DOWN 0.3 percent at 26,913.92 (close)

Shanghai – Composite: FLAT at 2,907.06 (close)

Euro/dollar: UP at $1.1016 from $1.1014 at 2100 GMT

Pound/dollar: DOWN at $1.2846 from $1.2900

Euro/pound: UP at 85.75 pence from 85.38 pence

Dollar/yen: UP at 109.06 yen from 108.93 yen

Brent North Sea crude: FLAT at $63.66 per barrel

West Texas Intermediate: FLAT at $58.00 per barrel

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