Prospects for a fresh US stimulus package appeared to brighten following Trump’s departure from the US military hospital. Mr Trump returned to the White House on Monday after a three-night hospital stay and said he felt “real good”, though one of his doctors cautioned that he may not be out of the woods yet.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.71 percent to a two week-high, led by Hong Kong. HSI climbed 0.88 percent Japan’s Nikkei .N225 also added 0.41 percent.
As well as Trump’s health, “there is also some market attention on whether the US Congress will pass the extra stimulus bill,” said Tai Hui, Chief Asia Market Strategist, J.P. Morgan Asset Management.
“If we do see some form of stimulus coming through, I think the market will take it in a positive light as much of the important support from the previous round has expired,” he said.
S&P 500 futures ESc1 rose 0.08 percent after the best daily gain on the S&P 500 index .SPX in a month overnight. Oil held sharp overnight gains.
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FTSE 100 LIVE: Asian stocks at two-week high as Donald Trump returns to White House (Image: GETTY)
1.45pm update: FTSE 100 increases gains following sluggish start
The London stock index was up 20.03 at 5962.97.
1.25pm update: Global economy recovery but ‘calamity is far from over’ – IMF
The managing director of the International Monetary Fund has said the global economy is looking “less dire”, and the IMF will make a “small” upward revision to its 2020 global output forecast.
Kristalina Georgieva told a London School of Economics event: “My key message is this: The global economy is coming back from the depths of this crisis.”
However, she also warned: “But this calamity is far from over.
“All countries are now facing what I would call ‘the long ascent’ – a difficult climb that will be long, uneven, and uncertain. And prone to setbacks.”
12.45pm update: FTSE 100 continues strong recovery
The London stock index has continued to recover following a faltering start to the day, and is now up 12.48 points at 5955.42.
12.20pm update: Chrysaor to take over Premier Oil – creating UK North Sea’s biggest producer
Chrysaor has agreed a reverse takeover of Premier Oil, a move that would create the British North Sea’s largest oil and gas producer.
The deal will see Premier’s creditors paid $1.23 billion in cash and will fold the company into a private equity-backed group, that is expected to see shareholders receive a 5.45 percent stake.
Chrysaor’s largest shareholder, Harbour Energy, is expected to own just over 39% of the merged company, which will stay listed on the London Stock Exchange.
The takeover is still subject to approval from regulators and Premier’s creditors and shareholders.
11.45am update: FTSE 100 stages rapid recovery following early losses
The FTSE 100 index was down by just 4.08 points at 5938.86.
This compared to a fall of 27.77 points only an hour earlier.
10.45am update: FTSE 100 down 27.77 at 5915.17
9.30am update: UK cannot continue ‘enormous’ borrowing in long-term
Chancellor Rishi Sunak has warned the country annot continue to borrow enormous amounts of money in the long term because it is unsustainable for the economy.
He told BBC Breakfast: “This year we’re obviously having to borrow an enormous amount of money to provide support to the economy at a time of crisis, that’s the right thing to do.
“In terms of the medium term, obviously this can’t carry on forever.
“This level of borrowing, which will be record levels pretty much this year, is not sustainable in the long run.”
Rishi Sunak warned cannot continue to boor ‘enormous’ amounts of money in the long-term (Image: BBC)
8.45am update: FTSE 100 slides after three-day run of gains
The FTSE 100 has been driven down by a firming pound after a three-day run of gains.
The blue-chip index dropped 0.4 percenr and fell behind its European peers as the British currency increased above $1.30 per dollar level.
7.52am update: Sunak’s priority is ‘trying to protect as many jobs as possible’
Chancellor Rishi Sunak has insisted his priority is to protect as many jobs as possible following the economic fallout from the coronavirus pandemic,
He told Sky News: “My overall focus at the moment is trying to protect as many jobs as possible. What is happening in our economy at the moment is significant and severe, many people are losing their jobs.
“So the focus of my intention in the short term is doing what we can to support as much employment as possible.
“Over time we need to have sustainable public finances. That is important to me, it is important to the Government, but in the short term the best way to have long-term sustainable public finances is to protect as much employment as possible.”
7.38am update: Gold miner Northern Star to buy smaller competitor Saracen for A$5.76billion
Asutralian gold miner Northern Star Resources has offered to buy smaller peer Saracen Mineral Holdings for A$5.76 billion in a move thay will create a global top-10 gold miner by market value.
In a joit statement, the boards of both companies backed the shares and cash proposal, which would create a $11.5 billion company, which would be the eight largest gold miner in the world bt market capitalisation.
Northern Star will own 64 percent of the combined entity, with Saracen owning the remaining 36 percent.
A shareholder meeting will be held in January to formally approve the proposal.
The combined entity will aim for two million ounces of gold production by 2027 – an increase of 30 percent in production from the current 1.6 million ounces.
Warren Edney, research analyst at EL&C Baillieu, said: “It will make a globally competitive gold miner. I think it’s quite positive for Northern Star shareholders.”
7.15am update: Oil prices surge after Trump leaves hospital following coronavirus treatment
Oil prices have jumped significantly after US President Donald Trump left hospital following treatment for COVID-19.
Overall, oil increased five percent overnight and edged higher still in Asia.
The jump was also helped by a supply squeeze as a strike shut six Norwegian offshore oil and gas fields.
US crude last stood at $39.39 a barrel, up 0.43 percent and, Brent crude rose 0.48 percent to $41.49.