STOCKS SOAR ON EXPECTED PARTIAL TRADE ACCORD BETWEEN U.S. AND CHINA -- INDUSTRIAL MINING SHARES LEAD MATERIALS HIGHER -- INDUSTRIALS, ENERGY, AND FINANCIALS ALSO LEAD -- BRITISH POUND HAS BIGGEST GAIN IN YEARS ON POSSIBLE BREXIT BREAKTHROUGH

STOCK INDEXES SOAR ON TRADE HOPES...Stocks around the world are jumping sharply today on reports of a partial trade deal reached between the U.S. and China.   Chart 1 shows the S&P 500 surging to the highest level this month to put it well above its 50-day moving average.  The same is true of the Dow Industrials and Nasdaq.  The Dow Transports and small cap stocks are also having an especially strong day.   All eleven stock sectors are up today with the biggest gains in materials, industrials, energy, and financials.  A weaker dollar is helping boost economically-sensitive commodity markets and their shares.

Chart 2 shows the Materials SPDR (XLB) surging above its 50-day line.   The XLB is being led higher by stocks tied to copper, steel, and aluminum on renewed optimism for those commodities closely tied to global growth.    Another jump in crude oil is boosting energy shares.  Meanwhile, gold shares are falling with the yellow metal as safe havens are being sold along with Treasury bonds as yields continue to rise.   Financials are rising with bond yields which are climbing around the world today.

Foreign currency markets are also rising against the dollar (while the safe haven Japanese yen is dropping).   Chart 3 shows the  British Pound having its best two-day gain in more than ten years on hopes for a possible Brexit breakthrough.

FOREIGN STOCKS ARE JUMPING... Chart 4 shows EAFE iShares (EFA) jumping 2% today to the highest level in a month.  It's being led by higher by European shares.   Chart 6 shows Emerging Markets iShares (EEM) climbing back over its 200-day average.  It's being led higher by shares in China and Hong Kong.   Today's big jump in foreign currencies is giving foreign stock ETFs (quoted in dollars) a bigger boost.  That helps explain today's 3% jump in German and United Kingdom iShares.