US open: Stocks rise but still on course for worst year since 2008
US stocks rose on New Year's eve, with sentiment underpinned by signs of progress in Sino-US talks, but Wall Street was still poised to end the month with losses, having suffered its worst year since the financial crisis in 2008.
At 1800 GMT, the Dow Jones Industrial Average was up 0.9% at 23,272.53, while the S&P 500 and the Nasdaq were up 0.6% at 2,501.42 and 6,626.08, respectively.
Indications of improving relations between the US and China helped to lift the tone after US President Donald Trump hailed trade progress over the weekend.
Trump tweeted on Saturday: "Just had a long and very good call with President Xi of China. Deal is moving along very well. If made, it will be very comprehensive, covering all subjects, areas and points of dispute. Big progress being made!"
After the tweet, the Wall Street Journal cited sources familiar with the negotiations as saying that Trump "may be overstating how close the two sides are to an agreement". However, a statement on Sunday from Lu Kang, the spokesperson for China’s foreign ministry, seemed to confirm Trump's trade optimism.
"China stands ready to work with the US to implement the important consensus reached by President Xi Jinping and President Trump in Argentinaa, expand co-operation on the basis of mutual benefit, manage differences on the basis of mutual respect," Lu said.
On the downside, however, investors were mulling over disappointing Chinese manufacturing figures. The National Bureau of Statistics’ official manufacturing purchasing managers’ index printed at 49.4 this month from 50.0 in November, falling short of expectations for a reading of 49.9 and marking the lowest level since February 2016.
The sub-index for total new orders declined to 49.7 in December from 50.4 the month before, moving into contraction territory and hitting its lowest level since February 2016, while the sub-index for production fell to 50.8 from 51.9 in November.
Meanwhile, the US government shutdown entered its second week, as Trump and the Republicans remained at odds over funding for his Mexican border wall.