World share and commodity prices rose yesterday as hints of progress on the US-China trade standoff provided a glimmer of optimism in what has been a punishing 2018 for markets globally.
Europe's STOXX 600 followed Asia's lead to push 0.4 per cent higher and Wall Street futures were up 1 per cent as traders tried to overcome the worst year for equities since the 2008 financial crisis.
Sentiment had improved when US President Donald Trump tweeted that he held a "very good call" with China's President Xi Jinping on Saturday to discuss trade and claimed "big progress" was being made.
The Wall Street Journal reported the White House was pressing China for more details of how it might increase US exports and loosen regulations that stifle US companies there.
Economic data out of China was unhelpfully mixed, with manufacturing activity contracting for the first time in two years, although the service sector improved.
MSCI's broadest index of Asia-Pacific shares managed a 0.6 per cent gain, but it was still down 16 percent for the year. A sub-index of top Chinese companies lost more than a quarter of its value.
Paris made a respectable 1 per cent on the day, but London's FTSE fell flat again. They are down 11 and 12 per cent for the year respectively. Germany's export-heavy DAX has had it worse, losing more than 18 per cent of its value.
E-Mini futures for Wall Street's S&P 500 had gained 0.8 per cent ahead of US trading. The index is off almost 10 per cent for December, its worst month since February 2009, down 15 per cent for the quarter and 7 per cent for the year.
European bond markets were closed yesterday, but the drop in US yields has undermined the dollar in recent weeks. Against a basket of currencies, it was on track to end December with a loss of 0.8 per cent but remained up on the year.
The dollar has also had a tough month against the yen. It lost 2.8 per cent this month and was last trading at just under 110. However, 2018 was mostly stable for the pair, trading all year in a range of 104.55 to 114.54.
The euro was on track to end the month higher at $1.1450 but nursing losses of almost 5 per cent over the year. Sterling made a last push to $1.28, but Brexit woes have cost it more than 5 per cent.
That was trivial compared with the drop in oil prices - Brent crude is down almost 40 per cent since its peak in October. It was last up $1.22 cents at $54.40 a barrel but down 20 per cent for the year. US crude futures nudged up 96 cents to $46.29.
Gold rallied almost 5 per cent in the past month to stand at $1,283 an ounce.
Copper, aluminium, zinc and nickel, however, were all down 17 to 26 percent this year. The industrial metals are sensitive to China's economy, which consumes almost half the global supply.