Global stocks and the pound soar as euphoric traders cheer a US-China trade deal and a landslide UK election result

Getty/Scott OlsonGlobal stocks surged to all-time highs on Friday after Donald Trump reportedly signed off on a prospective trade deal with China that would cut some existing tariffs and suspend others set to go live on Sunday.
Boris Johnson’s Conservatives delivered a landslide victory in Britain’s general election that paves the way for Brexit.
Futures signal the S&P 500 and Nasdaq will rally from record levels, Britain’s FTSE 250 hit a new high on Friday, and Europe’s Stoxx 600 soared to a record.
Domestic-focused UK stocks including Royal Bank of Scotland, Lloyds Banking Group, and EasyJet rallied by 10% or more.
“Some investors will see today as Christmas come early, as we see a convergence of two critical political risks coming to some resolve,” one economist said.
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Global stocks surged to all-time highs on Friday after Donald Trump reportedly signed off on a prospective trade deal with China that would cut some existing tariffs and suspend others set to go live on Sunday, and Boris Johnson’s Conservatives achieved a landslide victory in the UK’s general election.
The MSCI index of developed and emerging world equity markets touched an all-time high on Friday. In the US, the S&P 500 and Nasdaq indexes closed at record levels on Thursday, and futures signal stocks are set to rally again once markets open.
Britain’s FTSE 250 of domestically exposed stocks hit a new high on Friday, and Europe’s Stoxx 600 reached an intraday record.

Domestic-focused UK stocks including Royal Bank of Scotland, Lloyds Banking Group, and EasyJet, all rallied by 10% or more. The British pound rose by 1.8% against the US dollar to $1.34.
President Trump has signed off on a trade deal with China that would lower some existing tariffs and suspend duties on $160 billion worth of Chinese imports that were set to go live on Sunday, according to Reuters. Meanwhile, the Tories won at least 364 seats in the House of Commons, surpassing the 326 needed for a majority and paving the way for Britain to leave the European Union.
“Some investors will see today as Christmas come early, as we see a convergence of two critical political risks coming to some resolve,” Dean Turner, an economist at UBS Wealth Management, said in an email. “Indications of a strong electoral outcome in the UK and developments towards a Phase 1 US-China trade deal have lifted the mood in the markets. ”
Here’s the market roundup as of 10:30 a.m. in London (5:30 a.m. in New York).
US stocks are set to rise with futures underlying the S&P 500, Dow Jones Industrial Average and Nasdaq up by 0.5% to 0.7%.
Asian equities climbed with China’s Shanghai Composite up 1.8%, Hong Kong’s Hang Seng up 2.6%, and Japan’s Nikkei up 2.6%.
European markets are jumping with Germany’s DAX and the Euro Stoxx 50 both up 1.5%.
Oil prices climbed with West Texas Intermediate up 1.2% at about $59.90 a barrel, and Brent crude up 1.5% at $65.20.
The pound held onto post-election Thursday evening gains, and was up 1.8% at $1.34 on Friday morning.
The FTSE 100 benchmark of UK large caps rallied 1.7%, weighed down by internationally focused companies that decline when the pound rallies. A stronger pound lessens the value of revenue generated abroad. 

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